Sri Lanka Inflation Rises For Second Month On High Energy Costs

2023-12-01 04:14:54

(MENAFN- NewsIn) Dec 1 (Bloomberg) – Sri Lanka's inflation accelerated in November for a second straight month as energy tariffs were raised to keep the International Monetary Fund's $3 billion bailout on track.

The consumer price index in Colombo rose 3.4% from a year ago, the statistics department said on Thursday. That's faster than 3.0% gain seen in a Bloomberg survey, and compared with 1.5% in October.

The latest print comes after Sri Lanka struck an initial deal to restructure about $5.9 billion of its debt with the nation's official creditors, including India and the Paris Club. The move will pave the way for a $330 million loan payout from the IMF board in December. Authorities also hiked electricity tariffs to meet the loan bailout conditions.

Last week, Sri Lanka's central bank signaled a pause after cutting interest rates for a fourth time this year as it allows policy steps to work its way through the economy. Once uncertainties over debt restructuring are cleared, monetary policy transmission will speed up, Governor Nandalal Weerasinghe told Bloomberg earlier this month.

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