Sri Lanka's Inflation Drops to 2.5% in March

Sri Lanka's consumer price inflation fell to 2.5% in March from 5.1% in February, according to official statistics released on Monday, as the impact of a higher sales tax required to reach targets under a $2.9-billion IMF plan faded. The National Consumer Price Index (NCPI) opens a new tab measures broad retail price inflation and is released monthly with a 21-day lag.

The fall was largely driven by a 22% reduction in home electricity tariffs last month, resulting in non-food price increases of only 0.7% in March vs 5.1% in February.