Sri Lanka Latest News: Economic Deflation Marks Historic Change
Sri Lanka Economic Update: First Deflation in 39 Years
Sri Lanka latest updates reveal that the country has entered a phase of deflation, marking a historic economic event. According to the Census and Statistics Department, consumer prices decreased for the first time in nearly four decades, with the inflation rate for September dropping to negative 0.5%.
Details Behind the Deflation
Sri Lanka economy has witnessed significant changes due to various contributing factors. In August, inflation was at 0.5%, but September brought price drops in both food and non-food goods. This is a stark contrast to the inflation peak of 69.8% experienced two years ago during an unprecedented economic crisis.
Political Context and Future Implications
The recent economic turmoil led to acute shortages of essential goods, prompting widespread protests that resulted in the resignation of former president Gotabaya Rajapaksa. His successor, Ranil Wickremesinghe, initiated a $2.9 billion International Monetary Fund bailout to stabilize the situation. The recent elections brought President Anura Kumara Dissanayake into power, who has committed to maintaining the IMF program while relaxing some austerity measures.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.