Poor guys dont have the money to deposit in Bank or to Spend !
Sri Lanka s economic growth slowed for the first time in a year in the first quarter as inflation running above 25 percent and escalating violence in the South Asian island s civil war damped spending.
Spending by consumers and companies is weakening as the Central Bank holds interest rates at a six-year high to cool the fastest inflation in at least four years. Sri Lanka s economic outlook 'depends critically' on an end to the island s 25-year civil war, according to the International Monetary Fund.
'Growth is slowing due to the impacts of the worsening security situation on business confidence and high inflation increasing costs for companies,' said Vajira Premawardhana, head of research at Lanka Orix Securities Pvt. in Colombo.
Spending by consumers and companies is weakening as the Central Bank holds interest rates at a six-year high to cool the fastest inflation in at least four years. Sri Lanka s economic outlook 'depends critically' on an end to the island s 25-year civil war, according to the International Monetary Fund.
'Growth is slowing due to the impacts of the worsening security situation on business confidence and high inflation increasing costs for companies,' said Vajira Premawardhana, head of research at Lanka Orix Securities Pvt. in Colombo.
Consumer prices in the capital Colombo rose 26.2 percent in May from a year earlier, after increasing 25 percent in April, on higher food and energy costs. Annual inflation, or the 12- month moving average increase in prices, jumped to 19.8 percent in May.
Sri Lanka s 2008 inflation rate is likely to be 'significantly higher' than previous estimates as oil reaches records, the Central Bank said on May 26.
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