Sri Lanka’s Inflation Jumps To 18.8% In March
Posted 3,April

By Chehan Jayasuriya

In Local News

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Sri Lanka’s inflation rates jumped up from 15.1% in February to 18.8% in March as the Central Bank kept printing money to keep the interest rates low, and the currency collapsed in a failed float.

The country started experiencing increased inflation rates around November 2021 after two years of money printing to create a “Production Economy.”

Colombo Consumer Price Index rose to 164.9 points from 160.1 points, while the Food Index rose 30.1% over the past year.

In an attempt to float the rupee while surrender requirements and low-interest rates were in place, the rupee fell from 203LKR to 300LKR per US dollar.

In the past, it has targeted an effective exchange rate index at 100 in the flexible inflation targeting regime.