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Inflation decelerates

Jul 9, 2011 11:07:32 AM - itnnews.lk

Sri Lanka’s inflation drops to 7.1 percent in June, compared to 8.1 percent the previous month this year. Annual average inflation was 6.7 percent by June this year.

Sri Lanka’s economy expanded by 7.9 percent in the first quarter of this year, sustaining its high growth momentum in the previous year into this year as well. The expanded productive capacity of the economy will enhance supplies of food as well as other commodities, thus helping to bring down consumer prices. The country’s exports have performed well this year. Earnings from tourism as well as foreign exchange inflows on account of workers’ remittances are expected to increase further this year. These increased foreign exchange earnings would help cushion the deficit in the current account. In the mean time performance criteria for June this year as per the IMF-SBA have been successfully met.