A miracle after 29 years in Sri Lanka..!? Good news..!!
India's neighbor sri lanka, which has been reeling under a severe economic crisis, has now reached an important milestone after the regime change. It shows not only the people of the country but also the economic and commercial strength of the country. While all countries around the world are struggling to reduce inflation, the target has now become deflationary, i.e. inflation has gone into the negative. After 29 years in sri lanka, the inflation measure has recorded the lowest reading. Sri Lanka's inflation stood at 0.5% in august but reached negative 0.5% i.e. -0.5 percent deflation in September. If this continues next month, the Central bank of sri lanka may cut interest rates and increase the country's cash flow.
Through this, people can take loans at low interest rates and buy properties and goods. It is no exaggeration if it will be very helpful for the development of the country's trade and economy. Both food and non-food inflation declined in sri lanka in september, with inflation falling to -0.5 percent in september from 0.5 percent in August. The last rate of deflation in sri lanka ie Deflation was recorded in march 1995 at -0.9%. It had previously recorded a reading of -2.1 percent in 1985. In this situation, it has reached the level of deflation for the first time after 29 years.
Similarly, when sri lanka was hit by an economic crisis two years ago, its inflation skyrocketed to a staggering 69.8%, and in just 2 years, Sri Lankan government action has turned inflation into deflation. Since the peak of inflation 2 years ago, the country has experienced acute shortages of essential commodities including food, fuel, and medicine. The main reason for this bad state is the poor governance system led by former President Gotabaya Rajapaksa, in response to which the people's revolution broke out and he left the country and was removed from office in July 2022.
Ranil Wickremesinghe succeeded Gotabaya Rajapaksa and stabilized the Sri Lankan economy by receiving aid and investments from the indian government. The Ranil Wickremesinghe-led government revived the Sri Lankan economy by securing a $2.9 billion loan from the international Monetary Fund through continued austerity measures. However, Ranil Wickremesinghe lost the recent presidential election, and soon after Anura Kumara Dissanayake was elected as the new president, the Sri Lankan Senses and Statistics Organization released important inflation data.