Sri Lanka inflation eases in December

Sri Lanka's year-on-year inflation slumped to a 22-month low in December while average inflation eased to a 13-month low, the government's statistics office said today.
December's annual inflation eased to 4.7 per cent from 5.6 per cent in November while the 12-month moving average inflation was recorded at 6.9 per cent, down from 7.3 per cent in November.
The country's inflation rate in 2014 should slow to between 4 per cent and 6 per cent unless there is a major supply shock, officials announced early last month.
In a bid to raise government revenue, retail trade is to be subject to VAT and nation building tax from tomorrow, in line with proposals announced in the government's 2014 budget presented in November.

The economy is expected to record a growth rate of 7 per cent this year, according to the Central Bank forecasts.