Asian Development Bank in a latest report projected Sri Lanka’s inflation to average 24.6% in 2023 as fiscal tightening and double-digit interest rates weigh on domestic demand, supply-side disruption eases, and moderating external pressures alleviate food shortages.
Amidst the economic crisis coupled with sharp depreciation of Rupee, Sri Lanka’s inflation rose 46.4% last year.
The inflation is expected to return to single digits in 2024 by due to a high base effect. Accoirdingly, Sri Lanka’s inflation is expected to fall sharply to 5.5% in 2024 as further tightening helps re-anchor inflation expectations.
I