In case you weren’t aware, Sri Lanka had been experiencing the worst financial crisis in the history of the country. Inflation skyrocketed which made it extremely difficult for people to survive. However, it seems that the worst of the crisis is now over. For the first time since 2021, Sri Lanka has reported a single-digit inflation rate. This brings a huge relief to the people of the country. Here are the details that you need to know.
Sri Lanka Inflation: Single-Digit Inflation Rate This Year
On the 31st of July, Sri Lanka revealed that its inflation rate had dropped to 6.3 per cent. This is the first time since the year 2021 that the inflation rate in the island country has been in single digits. The last time this happened was in the month of September 2021, when the inflation rate was 5.8 per cent.
The reason why this is a big deal is that in June, the inflation rate in the country was 12 per cent. Hence, the fact that it dropped to just 6.3 per cent in a month has brought much-needed relief to the people of the country.
The rate of inflation is calculated by the Colombo Consumer Price Index. They measure the inflation rate on a year-on-year basis. The decline in the rate of inflation means that the path envisaged by the Central Bank of Sri Lanka or the CBSL is being followed.
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Much-Needed Relief For The Population Of The Country
Sri Lanka has witnessed the worst financial crisis in its history. It recorded one of the worst inflation rates in 2022 in September which was a whopping 69.8 per cent. However, things changed for the better when the island nation secured the IMF bailout.
IMF stands for International Monetary Fund and it granted Sri Lanka a bailout of US$2.9 Billion. The bailout was granted in the month of March this year and since then, the rate of inflation has fallen.
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