Sri Lanka's inflation, as measured by the year-on-year change in the Colombo Consumer's Price Index reached 24.3 percent in September, according to the Central Bank. The inflation index has declined continuously from the peak of 28.2 per cent in June 2008 and the CB expects it trend to continue into November due to its tight monetary policies and falling global commodity prices.
The CB also reported that it has achieved the quarterly reserve money targets so far this year and the broad money (M2b) growth fell to 10.3 percent in August 2008, compared to the growth of 16.6 percent in December 2007 and 22.2 percent in August 2007.
"This deceleration was facilitated by a slowing down of credit extended by commercial banks to the private sector as well as public corporations. The outcome of these developments would be evident in the forthcoming months through a further deceleration in inflation," the CB release said.