Inflation down to 3.4 percent after 25 years - Governor

Lakshmi DE SILVA

The year 2009 ends in a very hopeful note with the inflation rate coming down to 3.4 percent after 25 years, Central Bank Governor Ajith Nivard Cabraal told the Daily News yesterday.

Since 1977 there was only one occasion when the inflation rate came down to a comparable level. In all the other years after 1977 when the liberalized economy was introduced, the inflation rate was higher, he said.

The inflation rate had come down to a single digit during the past several months, foreign direct investment, foreign reserves and remittances increased while the Colombo Stock Market also earned a high position during the current year.