Sri Lanka inflation reached 70.2% in August | Inflation news

Food prices increased by 84.6%, while prices of non-food items increased by 57.1% in the crisis-hit island nation.

The statistics ministry said consumer inflation in Sri Lanka accelerated to 70.2% in August, as the island nation fell into recession. worst economic crisis for many decades.

The National Consumer Price Index (NCPI) rose 70.2% last month from a year earlier, following a 66.7% increase in July, the Census and Statistics Department said in a statement. father on Wednesday.

Food prices rose 84.6%, while prices of non-food items rose 57.1% in the tourism-dependent South Asian country of 22 million people.

The Central Bank of Sri Lanka (CBSL) in August said the inflation rate would moderate after peaking at around 70 percent as the country economy slows down.

The NCPI captures a broader range of retail price inflation and is published with a lag of 21 days per month.

The more closely watched Colombo Consumer Price Index (CCPI), released at the end of each month, rose 64.3% in August. It acts as a leading indicator for national prices and for See how inflation is doing in Sri Lanka’s largest city.

Sri Lanka’s economy shrank 8.4% in the quarter through June from a year ago, one of the steepest declines seen in a three-month period, amid fertilizer and fuel shortages.

“Inflation is expected to ease gradually from September,” said Dimantha Mathew, head of research at Colombo-based investment firm First Capital. moderate and hit single digits in the second half of 2023.”

Severe dollar shortages, due to economic mismanagement and the impact of the COVID-19 pandemic, have left Sri Lanka fight to pay for essential imports including food, fuel, fertilizer and medicine.

The country earlier this month achieved a preliminary agreement with the International Monetary Fund for a loan of approximately $2.9 billion, subject to the Fund receiving financial guarantees from official creditors and negotiations with private creditors.

India begins debt restructuring negotiations

India on Tuesday said it had begun talks with Sri Lanka on debt restructuring and promised to support its crisis-hit neighbor mainly through long-term investments after providing nearly $4 billion in debt. USD financial aid.

The Indian High Commissioner to Colombo said it held the first round of debt negotiations with Sri Lankan officials on September 16.

“Discussions held in a cordial atmosphere symbolized India’s support for an early conclusion and approval of an appropriate IMF program for Sri Lanka,” the High Commission said.

Sri Lanka will present its international creditors on Friday, presenting the full extent of the economic hardship and debt restructuring plan.

The Indian High Commission also said New Delhi would continue to support Colombo “in any way possible, especially by promoting long-term investments from India in key economic sectors”.

India’s support to Sri Lanka this year includes a $400 million currency swap, a $1 billion line of credit for essentials and a $500 million line on fuel. In addition, India has also deferred payment for Sri Lankan imports of about $1.2 billion and granted a credit line of $55 million for fertilizer imports.

The high-level committee said India was continuing to have development projects worth about $3.5 billion in Sri Lanka, which the president earlier this month asked his officials to address obstacles to with Indian-backed projects. He did not specify obstacles or projects.

President Ranil Wickremesinghe said Sri Lanka will turn its free trade agreement with India into a comprehensive economic and technological partnership.

Source link


News 7D: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button