Inflation ( CCPI)1.5% (April 2024)
GDP4.5% (4Q 2023)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate8.76%
12M T-Bill Rate9.29%
2Y T-Bond Rate10.00%/ 10.05%
4Y T-Bond Rate10.70% / 10.80%
USD/LKR299/300
Reserves $5.438Bn (April 2024)
Cum. Trade Deficit $1,229 Mn (March 2024 cumulative)
Cum. Fiscal DeficitLKR 2,320 Bn (Dec 2023)

Inflation continues to decline, hits eight months low

EconomicsJan 31, 2023
Inflation continues to decline, hits eight months low

Despite inflation up on a month-on-month basis, the year-on-year inflation measured by CCPI fell from 57.2% to 54.2% due to the base effect. Sea Fish and Coconut prices increased compared to last month, and education costs also adjusted at the beginning of the new year.

But in the long run, inflation is expected to follow the declining path until it reaches below 20%. The massive money printing has generated an excess of LKR 2.5Bn in the money supply as one of the barriers to easing off the inflation further in time to come.

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