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Shakthi,

What do you say about this ?

Sri Lanka consumer prices rise by 2.3% in December keeping 12-month inflation at 19.3%


December 29, 2006 (LBO) ? Consumer prices in Sri Lanka rose by 2.3 percent in December, keeping 12-month inflation at 19.3 percent, the Census & Statistics Department said Friday.

In the 12-months to November, inflation hit a ten year high of 19.8 percent, when the index rose by 4.4 percent in the preceding 30 days.

On a 12-month moving average, Sri Lanka's annual inflation rate rose to 13.7 percent in December, compared with 12.7 percent in November.

The government uses a 12-month moving average as the official figure for inflation. Census department said a short supply of most locally produced food items for the festive season pushed prices up.

The consumer price index was at 5114.1in December from 4998.4 in November, a jump of 2.3 percent, the census department said.

The inflation data were below market expectations, with analysts expecting a slight acceleration to around 14.0 percent.

The government cut import duties of several items in the food basket in December including potatoes, wheat flour and rice, in a bid to push down food prices.

The census department said the price of potatoes went down.

Sri Lanka's Central Bank Governor Nivard Cabraal said last week that the country's rate of inflation is worrying but he expects it to start easing by early next year.

'Inflation at 19.8% in November is high, the highest in 10 years. And it is worrying us. December inflation is historically high due to the festive season. But starting January, February we expect to see a gradual easing. It may take a bit longer, but you will see the results,' Cabraal said.

Inflationary pressures have prompted the central bank to hike policy rates by a total of 125.0 basis points so far this year, with more upward adjustments expected over the coming months.

Early this month, the bank raised its policy reverse repo rate at which cash is pumped into the system by 37.5 basis points to 11.5 percent, while the repurchase rate was raised by the same amount to 10.0 percent.

The bank has been cautious to raise policy rates in the past, saying tightening so far has helped cool inflation and curb credit growth.

Any recently written articles of yours?? In English only :)

greased the palms of some senior Sri Lankan Army officials

we called him Mr.10%

First of all, Vartharajah Perumal is NOT dead. He lives somewhere in India or elsewhere but on the expense of Govt. of India. Govt. of India has no option other than footing the bill under the Indo Lanka agreement. I think they spend a hell to keep this guy and his family living.

Secondly if you want to argue against any LTTE supporter about the brutality of LTTE against Tamils you do not have to give so many names. You have to give only ONE name - Amirthalingam.

Amirthalingam was a Tamil who had tirelessly fought for the cause of the Tamils for his entire political life, but in a more democratic manner. He was beaten by the Sinhalese goons in 1957 Saytyagraha at Galle Face. (Many LTTE supporters cry about this Saytyagraha WITHOUT mentioning the name of Amirthalingam.)

Amirthalingam was the one named by SJV for leadership after him at his death bead. Amirthalingam was the Tamil who kept the torch burning after SJV's death. He was the Tamil who united all Tamils under TULF banner in the 1977 election.

But even Thanthai Chelva's own right hand man had to die, in the hands of LTTE killers.

I never say beating Amirthalingam at 1957 Saytyagraha by Sinhalese was correct. But what is worse? Beating him or killing him?

Sinhalese goons have only beaten him. LTTE goons killed the guy. Which is worse?

But even a person like Amirthalingam has to die to ensure the supremacy of the Sun Goat.

Usually when I say this LTTE supporters shut their mouths