Inflation has spiked in September following food price increase (VIDEO)

Inflation has spiked in September following food price increase (VIDEO)

By Lahiru Fernando

24 Oct, 2017 | 10:16 pm

The recent increase in food items have resulted in a spike in inflation this month, said the Central Bank Governor Dr. Indrajit Coomaraswamy.

The CBSL Governor said the above while addressing the Shippers’ Academy in Colombo.

As measured by the change in the National Consumer Price Index;

  • Inflation in August 2017: 7.9
  • Inflation in September 2017: 8.6%

*year-on-year basis.

Despite an increase in exports, the trade deficit has widened to US$ 856 million in August 2017 from US$ 783 million in August 2016, said Gov. Coomaraswamy.

He also said a new pricing formular earmarked for 2018 will help loss making state enteprise such as the CPC and the CEB reduce some of its losses.

The Governor also commented on Sri Lanka’s official external reserves. He said: “the Central Bank has been able to attract on-debt creating inflows to boost reserves up to a current level of 7 billion US dollars.”

“Funds from the Hambantota port deal with China merchant port holdings was expected to boost reserves further.”

According to Dr. Commaraswmy, the first tranche of funds from the Hambantota port deal expected to reach the country in the 2nd or 3rd week of November 2017.

  • First tranche (expected in Nov.): 100 million
  • Second tranche (expected in three months): 300 million

The balance is expected in the following three months after the second tranche.

However the funds from the port deal is yet to be received by the treasury.