Inflation drops to 20.2 per cent

The Central Bank of Sri Lanka said inflation, as measured by the year-on-year change in the Colombo Consumers' Price Index, has declined to 20.2 per cent in October, from 24.3 per cent in September. The inflation index has declined steadily from a peak of 28.2 per cent in June 2008. The CB attributes the decline to its continuing tight monetary policies and to improvements on the supply side.