• Education
    • Higher Education
    • Scholarships & Grants
    • Online Learning
    • School Reforms
    • Research & Innovation
  • Lifestyle
    • Travel
    • Food & Drink
    • Fashion & Beauty
    • Home & Living
    • Relationships & Family
  • Technology & Startups
    • Software & Apps
    • Startup Success Stories
    • Startups & Innovations
    • Tech Regulations
    • Venture Capital
    • Artificial Intelligence
    • Cybersecurity
    • Emerging Technologies
    • Gadgets & Devices
    • Industry Analysis
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy
Today Headline
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
Today Headline
No Result
View All Result
Home Business & Finance Economic Policies

Sri Lanka current dollar inflows exceed imports by US$549mn in October todayheadline

November 30, 2024
in Economic Policies
Reading Time: 2 mins read
A A
0
4
SHARES
8
VIEWS
Share on FacebookShare on Twitter


ECONOMYNEXT – Sri Lanka’s inflation fell 2.1 percent in the 12-months to November 2024, while the index fell back to September 2022 levels, official data showed, amid deflationary policy and currency appreciation by the central bank.

The Colombo Consumer Price Index (re-based) fell to 0.3 points during the month of November 2024 to 189.4 point which is around the 189.3 points September 2022.

After rate cuts enforced by inflationary open market operations triggers a currency crisis and draws the International Monetary Fund, pegged currencies are usually not encouraged to appreciate based on a Mercantilist doctrine called ‘competitive exchange rates’.

But, the central bank under Governor Nandalal Weerasinghe has allowed the exchange rate to appreciate, boosting disposable incomes and a faster economic recovery and reserve collection.

Under so-called ‘flexible inflation targeting’, interest rates are usually slashed by crisis prone central banks on the claim that 12-month inflation is low using 12-month ‘real interest rates’ which is a statistical or econometric argument.

Governor Weerasinghe however pointed out that inflation was very high over the recent past and the economy was recovering fast and there was no problem with ‘deflation’.

Related

Sri Lanka deflation not harmful, economy growing: CB Governor

Sri Lanka deflation drives consumer goods sales, margins at JKH

The central bank’s monetary policy has also allowed electricity and fuel prices to come down.

When the slashed rate is enforced with inflationary open market operations as private credit recovers, currencies come under pressure again in the middle of 4-year IMF program.

Global commodity prices have also started to come down after the US Fed tightened monetary policy from around March 2022, abandoning earlier Mercantilist (cost-push or non-monetary) doctrine that supply chain bottlenecks was the reason behind high inflation.

It the 1960s and 1970s Anglophone macro-economists also printed money through open market operations claiming non-monetary arguments with wage-spiral inflation a key false doctrine. Sri Lanka’s deflation is coming amid wages hike made by some companies to account for tax hikes as well.

The central bank has allowed the exchange rate to appreciate from around 360 to the US dollar in March 2023 after a surrender rule was lifted, to around 291 to the US dollar now.

Sri Lanka’s rupee collapsed in 2022 as a float failed due to the surrender rule.

Deflationary policy itself started to show up in the balance of payments in September 2022 as a reported balance of payments surplus.

The food price index is down 2.1 percent over the past 12 months and 6.0 percent since September 2022.

Sri Lanka got locked into a violent cycle of so-called ‘stop-go’ policies after the IMF gave technical assistance to calculate potential output (growth), while flexible inflation targeting itself was incompatible with a reserve collecting central bank, critics have pointed out.

There have been warnings about early re-emergence of inflationary policy, through easy money given to banks through open market operations on the basis of government liquidity forecasts instead of forcing banks to manage liquidity as part of prudential policy. (Colombo/Nov29/2024)


Continue Reading

Tags: currentdollarexceedimportsinflowsLankaoctoberSritodayheadlineUS549mn
Previous Post

US general Jasper Jeffers to oversee Lebanon ceasefire mechanism alongside Hochstein

Next Post

Russia-Ukraine war: List of key events, day 1,010

Related Posts

India-Pakistan escalation: US Secy Rubio calls Pak PM Sharif, EAM Jaishankar; urges ‘restraint’ – The Economic Times Video todayheadline

May 8, 2025
6
'Incoherence': Trump slammed after reporter accuses him to his face of 'overstating' UK trade deal

‘Incoherence’: Trump slammed after reporter accuses him to his face of ‘overstating’ UK trade deal todayheadline

May 8, 2025
12
Next Post
Russia-Ukraine war: List of key events, day 1,010

Russia-Ukraine war: List of key events, day 1,010

  • Trending
  • Comments
  • Latest
Family calls for change after B.C. nurse dies by suicide after attacks on the job

Family calls for change after B.C. nurse dies by suicide after attacks on the job

April 2, 2025
Pioneering 3D printing project shares successes

Product reduces TPH levels to non-hazardous status

November 27, 2024

Hospital Mergers Fail to Deliver Better Care or Lower Costs, Study Finds todayheadline

December 31, 2024

Police ID man who died after Corso Italia fight

December 23, 2024
Harris tells supporters 'never give up' and urges peaceful transfer of power

Harris tells supporters ‘never give up’ and urges peaceful transfer of power

0
Des Moines Man Accused Of Shooting Ex-Girlfriend's Mother

Des Moines Man Accused Of Shooting Ex-Girlfriend’s Mother

0

Trump ‘looks forward’ to White House meeting with Biden

0
Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

0
Stories for a Changing Climate - Photo

Stories for a Changing Climate – Climate Generation

May 8, 2025
Bureau of Land Management releases arctic lease sale analysis

New survey finds broad support for new wildlife crossings

May 8, 2025
When statins aren't enough, this drug may help lower 'bad' cholesterol

When statins aren’t enough, this drug may help lower ‘bad’ cholesterol

May 8, 2025
Man gored by bison in year's first attack by Yellowstone's most dangerous wild animal

Man gored by bison in year’s first attack by Yellowstone’s most dangerous wild animal

May 8, 2025

Recent News

Stories for a Changing Climate - Photo

Stories for a Changing Climate – Climate Generation

May 8, 2025
3
Bureau of Land Management releases arctic lease sale analysis

New survey finds broad support for new wildlife crossings

May 8, 2025
5
When statins aren't enough, this drug may help lower 'bad' cholesterol

When statins aren’t enough, this drug may help lower ‘bad’ cholesterol

May 8, 2025
4
Man gored by bison in year's first attack by Yellowstone's most dangerous wild animal

Man gored by bison in year’s first attack by Yellowstone’s most dangerous wild animal

May 8, 2025
5

TodayHeadline is a dynamic news website dedicated to delivering up-to-date and comprehensive news coverage from around the globe.

Follow Us

Browse by Category

  • Africa
  • Asia
  • Basketball
  • Business & Finance
  • Climate Change
  • Crime & Justice
  • Economic Policies
  • Elections
  • Entertainment
  • Entrepreneurship
  • Environmental Policies
  • Europe
  • Football
  • Gadgets & Devices
  • Health
  • Medical Research
  • Mental Health
  • Middle East
  • Motorsport
  • Olympics
  • Politics
  • Public Health
  • Relationships & Family
  • Science & Environment
  • Software & Apps
  • Space Exploration
  • Sports
  • Stock Market
  • Technology & Startups
  • Tennis
  • Travel
  • Uncategorized
  • Us & Canada
  • Wildlife & Conservation
  • World News

Recent News

Stories for a Changing Climate - Photo

Stories for a Changing Climate – Climate Generation

May 8, 2025
Bureau of Land Management releases arctic lease sale analysis

New survey finds broad support for new wildlife crossings

May 8, 2025
  • Education
  • Lifestyle
  • Technology & Startups
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy

© 2024 Todayheadline.co

Welcome Back!

OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business & Finance
  • Corporate News
  • Economic Policies
  • Entrepreneurship
  • Market Trends
  • Crime & Justice
  • Court Cases
  • Criminal Investigations
  • Cybercrime
  • Legal Reforms
  • Policing
  • Education
  • Higher Education
  • Online Learning
  • Entertainment
  • Awards & Festivals
  • Celebrity News
  • Movies
  • Music
  • Health
  • Fitness & Nutrition
  • Medical Breakthroughs
  • Mental Health
  • Pandemic Updates
  • Lifestyle
  • Fashion & Beauty
  • Food & Drink
  • Home & Living
  • Politics
  • Elections
  • Government Policies
  • International Relations
  • Legislative News
  • Political Parties
  • Africa
  • Asia
  • Europe
  • Middle East
  • Artificial Intelligence
  • Cybersecurity
  • Emerging Technologies
  • Gadgets & Devices
  • Industry Analysis
  • Basketball
  • Football
  • Motorsport
  • Olympics
  • Climate Change
  • Environmental Policies
  • Medical Research
  • Science & Environment
  • Space Exploration
  • Wildlife & Conservation
  • Sports
  • Tennis
  • Technology & Startups
  • Software & Apps
  • Startup Success Stories
  • Startups & Innovations
  • Tech Regulations
  • Venture Capital
  • Uncategorized
  • World News
  • Us & Canada
  • Public Health
  • Relationships & Family
  • Travel
  • Research & Innovation
  • Scholarships & Grants
  • School Reforms
  • Stock Market
  • TV & Streaming
  • Advertise with Us
  • Privacy & Policy
  • About us
  • Contact

© 2024 Todayheadline.co