Business
Central Bank says inflation is on target despite food price pressures
Dr. Chandranath Amarasekara, Director of Economic Research at the Central Bank of Sri Lanka
by Sanath Nanayakkare
While it is correct to say that the cost of living is rising particularly in terms of food prices, the Central Bank observes that inflation is well anchored broadly within the target range of 4-6 per cent, Dr. Chandranath Amarasekara, Director of Economic Research at the Central Bank of Sri Lanka told the Island Financial Review (IFR) yesterday.
IFR put this query to the Central Bank as many people are often heard complaining about rising food prices adding that there is no mechanism in place to stem it. A consumer in Delgoda told this reporter that a grocery retailer who offers best prices in the area sells Nipuna Samba at Rs.117.50 a kilo, white sugar at Rs.126 a kilo, brown sugar at Rs. 134 a kilo and canned fish Mackerel at Rs. 260 and edible B-onion at Rs. 250 a kilo though the gazetted (regulated) prices for these essential food items are much lower than that. He had bought turmeric curry powder at Rs. 300 per 100grams.
“As you have observed, cost of living is rising though non-food prices are rising slowly. Maintaining inflation in the target range does not mean that cost of living does not increase”. Dr. Amarasekara said.
Elaborating on what he termed as a nationally important subject, he said, “The Central Bank observes that inflation is well anchored broadly within the target range of 4-6 per cent. Year-on-year inflation based on the Colombo Consumer Price Index (CCPI) was at 4.8 per cent at end 2019 and remained at 4.0 per cent by October 2020. Year-on-year inflation based on the National Consumer Price Index (NCPI), which was at 6.2 per cent at end 2019, remained higher at 6.4 per cent by September 2020”.
“The above figures show that there is indeed inflation, displaying that cost of living is rising at these rates on average. For example, compared to prices of the representative consumption basket last year, prices are 4.0 per cent higher in October 2020 if you consider the CCPI basket. If you compare the NCPI basket, average prices are 6.4 per cent higher. However, what the Central Bank is aiming to do is to maintain these increases on average between 4-6 per cent on a year-on-year basis. From what we know from the Sri Lankan experience as well as experiences of other countries is that excessive inflation as well as deflation is not good for an economy, and this is why the Central Bank aims to maintain inflation between 4-6 per cent”.
“When you compare CCPI and NCPI, you will also notice that inflation is higher at the national level than in Colombo. This is because the food category in the consumption basket is relatively small in Colombo – people spend more on other goods – compared to the national average. You see that food prices have remained at high levels, and this is what people mostly feel as high inflation. In fact, if you consider food inflation in the CCPI basket, it was 6.3 per cent at end 2019, but was at 10 per cent in October 2020. Food inflation in terms of NCPI, which was 8.6 per cent at end 2019 has risen to 12.7 per cent by September 2020. Throughout 2020, food inflation has remained at double digit levels,” he said.
“The government is monitoring food inflation closely and has taken several measures to regulate prices of food supplies. In addition, the ongoing drive to promote domestic food production will also result in considerable gains in the period ahead, thereby allowing food inflation to subside”, Dr. Amarasekara said.
Meanwhile, a resident at Mount Lavinia told the IFR that retail grocery shops in the area face a supply disruption due to the prevailing situation in the country which has obviously led to increases in food prices.
A resident in Kottawa said,” Grocery shops here don’t have samba rice. They have enough stocks of Keeri Samba sold at Rs. 120 a kilo”.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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