Colombo Consumers’ Price Index measured the inflation in November as 7.6%, having recorded 7.8% October.
Despite the drop, the Central Bank has warned that the disturbed weather patterns have caused Vegetable, Rice and Coconut prices to rise.
If the administered prices increase, this could cause inflation in the non-food category as well, said the CBSL.
Decline in Workers’ remittances
During the first 9 months of 2019, the workers’ remittances have declined by a noteworthy amount, compared to the same time 2016.
The decline is a whopping 16.7%;
- September 2016 – US$ 578 million
- September 2017 – US$ 481 million
The cumulative inflow from workers’ remittances declined by 7.4% to US$ 4.985 billion during the first nine months of 2017, relative to the corresponding period of 2016.
Sri Lanka’s trade deficit widened 7.5%;
- September 2016 – US$ 610 million
- September 2017 – US$ 656 million
The trade deficit expanded with higher imports of fuel and rice during September.
Earnings from tourism has declined moderately with a slightly lower number of tourist arrivals from key destinations compared to September 2016.