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Sri Lanka had 38-months of low inflation: CB Governor

Apr 07, 2012 (LBO) - Sri Lanka has had single digit inflation for the past 38-months and no crisis in the banking system, despite a short-term weakening of the currency, Central Bank Governor Nivard Cabraal said.
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"During the past 38 months inflation had been in the single digit level," Cabraal told the LBR-LBO Ceo forum, a gathering of senior executives in Colombo.
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This is the longest ever period (since the liberalization of the economy in 1977) we have had single digit inflation.



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"The only other time we have had inflation for even a lesser period was 23 months, was from august 1998 to June 2000.

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"

Cabraal said inflation would be in the single digit for the foreseeable future as well.

In the year to March 2012, inflation accelerated to 5.

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5 percent from 2.7 percent a year earlier, amid steep currency depreciation.
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Sri Lanka's central bank managed to keep inflation measured by Colombo Consumer Price Index low by Sri Lanka's past standards, but it was higher than levels seen in countries with more stable exchange pegs with the US dollar.

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Critics have said that a key reason for Sri Lanka's steep inflation spikes have been a failure to pass on oil price increases to the economy.

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