In May inflation rose 3.0 percent, following a massive increase in reserve money in the April holiday month which analysts say is a structural problem in Sri Lanka which needs to be addressed.
Inflation of 3.0 percent is higher than the entire annual inflation of a country with a well-managed economy.
In 2006, a year which saw high volumes of money printing, inflation in May rose 5.4 percent and June 3.9 percent, slightly higher than the June inflation this year.
The Department of Census and Statistics said most of the price increased came from locally produced agricultural consumer goods. The department claimed the vegetables were in short supply in market is Colombo.
Expectations
A survey of financial institutions in Colombo active in the debt markets by the Bloomberg news agency found that the average 12-mont