Sri Lanka's central bank blamed 'supply side' factors for inflation that jumped from 13 percent to 20 percent levels through the second half of 2007.
But the International Monetary Fund said the central bank had 'paused' its tight monetary policy stance mid-way in 2007.
Updated The new Colombo Consumer Price Index (CCPI-N) gain of 2.8 percent in February was down slightly from 3.0 percent in January.
But the 12-month increase in the older Colombo Consumer Price Index (CCPI) was higher at 24 percent with the series having a pronounced 'base-effect' as it had fallen in absolute terms in the first quarter of 2007, amid exceptionally tight monetary policy.
In February 2007 the index fell 1.3 percent in absolute terms.