Sri Lanka's inflation rate has eased to 35.3% in April from 50.3% in March, providing some relief to the struggling economy. The country has been grappling with soaring prices for over a year as it faces its worst financial crisis since gaining independence from Britain in 1948. The Colombo Consumer Price Index (CCPI) showed a reduction in food inflation to 30.6% in April from 47.6% in March, while non-food inflation reached 37.6%. Analysts attributed the decrease in inflation to lower fuel prices, lower demand, and easing global commodity prices, and they expect inflation to continue to moderate over the next few months.
The central bank has kept interest rates steady and expressed optimism for inflation to sharply decelerate in the coming months. Central bank Governor Nandalal Weerasinghe said that a favorable base effect would kick in from next month, with inflation projected to hit single digits by the end of December. The country secured a $3-billion bailout from the International Monetary Fund (IMF) in April. The CCPI, a leading indicator for broader national prices, tracks inflation in Colombo, Sri Lanka's biggest city.
