Sri Lanka’s Central Bank foresees deeper deflation ahead
(Photo by Christoph Theisinger on Unsplash)
The Central Bank of Sri Lanka states that the revision of electricity tariffs in January 2025, which was lower than expected, will lead to deeper deflation in the upcoming period compared to previously projected amounts.
However, it also mentions that inflation is expected to turn positive by mid-2025, and with appropriate policy adjustments, the target level of 5% is anticipated to be reached in the medium term.
The Colombo Consumer Price Index (CCPI), which measures headline inflation, showed a negative inflation rate in December 2024 for the fourth consecutive month.
The Central Bank indicates that although demand pressures have decreased, the primary reasons for this negative inflation are the revisions in electricity tariffs and domestic fuel prices.
Latest Headlines in Sri Lanka
- NPP MP Kosala Nuwan Jayaweera passes away April 6, 2025
- Harsha delighted as his agri project comes to life in Dambulla April 6, 2025
- Sri Lanka, India launch upgraded rail line and new signalling system April 6, 2025
- Sri Lanka and India launch three key development projects to boost energy and agriculture April 6, 2025
- Bar Association calls for immediate investigation into youth’s death in Police custody April 6, 2025
