The August 2022 inflation rate in Sri Lanka jumped to a record high of 64.% in July of 2022, as a political crisis, state of emergency, and weak currency added further pressure on prices. Biggest upward contribution came from food cost which jumped at an all-time high of 93.7%, namely food commodities (29.5%).
Sri Lanka’s consumer prices continued their record ascent in August on a persistent shortage of essentials from food to fuel due to the country’s depleted foreign exchange reserves.
While the Central Bank left borrowing costs unchanged in August , policy makers may be forced to resume tightening to arrest runaway inflation.
Headline inflation, as measured by the year-on-year (YoY) change in the Colombo Consumer Price Index (CCPI, 2013=100)1 increased to 64.3% in August 2022 from 60.8% in July 2022.
This increase in YoY inflation was mainly driven by the monthly increases of both Food and Non-Food categories.
Food inflation (YoY) increased to 93.7% in August 2022 from 90.9% in July 2022, while Non-Food inflation (YoY) increased to 50.2% in August 2022 from 46.5% in July 2022.
Monthly change of CCPI recorded at 2.45% in August 2022 due to price increases observed in items of both Food and Non-Food categories which were 0.83% and 1.62%, respectively.
Within the Food category, increases were observed in prices of fresh fish, fruits, bread, biscuits, eggs and chicken.
However, prices of rice and dhal decreased during the month. Further, within the Non-Food category, increases were observed in prices of Housing, Water, Electricity, Gas and Other Fuels (Electricity bill and maintenance/reconstruction),
Prices of Transport (Transport fare for schooling and airfare), Clothing and Footwear and Miscellaneous Goods and Services sub-categories increased in unbearable proportions for the people during the month.
Annual average inflation rose to 28.0% in August 2022 from 23.1% in July 2022. Core inflation (YoY), which reflects the underlying inflation in the economy, increased to 46.6% in August 2022 from 44.3% in July 2022, while annual average core inflation increased to 20.3% in August 2022 from 16.7% in July 2022.
SL food inflation rises to 93.7% in August pushing people into starvation
High Commissioner Moragoda participates in ‘Idea Exchange’ programme of the Indian Express
The Indian Express newspaper hosted High Commissioner of Sri Lanka to India Milinda Moragoda at its ‘Idea Exchange’ programme on 1 September, 2022. The programme was held at the newspaper’s headquarters in Noida.
This programme conducted as an exchange of ideas with the senior editorial staff of the Indian Express, features a distinguished personality every week. As per the format of the programme, the editors pose questions to the guest and a discussion follows. The content of the discussion is carried on a full page of the newspaper every Monday.
The senior editors of the Indian Express led by Chief Editor Raj Kamal Jha posed several questions to High Commissioner Moragoda at the event. The questions covered Sri Lanka’s present political developments, its economic situation and Indo-Sri Lanka relations at large. The discussion was moderated by senior journalist, Shubhajit Roy.
Founded in 1932, The Indian Express is one of the most prominent English daily newspapers in India.
High Commission of Sri Lanka
New Delhi
Gotabhaya welcomed by a group of SLPP members (PHOTOS)
Former President Gotabhaya Rajapaksa returned to Sri Lanka at midnight yesterday (02) and was received by a group of ministers including members of the Sri Lanka Podujana Peramuna.
Seetha says she is willing to give up her seat for Gotabhaya
Many people are talking about whether Gotabaya Rajapaksa, who returned to Sri Lanka, will continue to engage in active politics. In a press conference held recently, Podujana Peramuna MPs stated that they would give their utmost support if Rajapaksa comes to Parliament and becomes the Prime Minister.
However, it is reported that there has been no discussion regarding the future political affairs of the former president or his accession to parliament.
Meanwhile, Podujana Peramuna’s National List MP Seetha Arambepola has told the media that she is ready to give up her MP position if Gotabhaya Rajapaksa intends to come to Parliament. However, the MP also mentions that such a request has not been made by the party or Rajapaksa.
Arambepola further states that the story of the former president coming to Parliament is a false news spread through social media.
A statement from the Chinese Ministry of Foreign Affairs on Sri Lanka’s debt
The Ministry of Foreign Affairs of China says that it will continue to support Sri Lanka to recover from the current difficulties it is facing and to ease its debt burden as well as to achieve sustainable development.
Accordingly, they have stated that they are ready to work with other countries and international financial institutions to help Sri Lanka positively.
Gotabhaya will never enter politics again – Welgama
Samagi Jana Balavegaya Member of Parliament Kumara Welgama says that, according to what happened to the former President Gotabhaya Rajapaksa, he does not think that he will enter politics again.
Kumara Welgama said this while speaking to the media while leaving after the parliamentary meeting yesterday (02).
The SLFP divides into two during the budget voting!
A clear division of the Sri Lanka Freedom Party’s parliamentary group was seen during the voting for the second reading of the 2022 Amended Appropriation Bill held yesterday (02).
Sri Lanka National Party President Maithripala Sirisena, Secretary Dayasiri Jayasekara, San Vijayalal De Silva and Dushmantha Mitrapala were not present in the House to vote and all the other members of the party had voted in favor of the budget.
Meanwhile, Maithripala Sirisena succeeded in passing an amendment to the party constitution which increased his powers as party president at the 71st anniversary of the Sri Lankan National Party held yesterday.
Accordingly, it will be possible to see in the future whether this division of the Sri Lankan Party is another double act of theirs or not.
Measures to prevent delays in obtaining information from government agencies
The government has decided to use telephone, WhatsApp and e-mail to prevent delays in obtaining information from government agencies under the right to information.
Accordingly, the Ministry of Public Administration requests the people to send their phone number, WhatsApp number and email address along with the information requests.
Former President Gotabhaya Rajapaksa returns to Sri Lanka! (VIDEO)
Former President Gotabhaya Rajapaksa has returned to Sri Lanka.
Accordingly, it is stated that he arrived at Katunayake Bandaranaike International Airport yesterday (02) at around 11.45 pm on SQ 488 belonging to Singapore.
Gotabaya Rajapaksa left the country on July 13 due to the people’s struggles that arose in the country. From that day, he stayed in Maldives, Singapore and Thailand for a period of one month and 20 days.
India commissions first indigenous aircraft carrier and unveils the new Ensign of Indian Navy
Prime Minister Narendra Modi unveiled the new Naval Ensign for Indian Navy at Kochi on 2 September 2022 on the sidelines of the commissioning of India’s first indigenous aircraft carrier INS Vikrant. The new Naval Ensign has done away with the Saint George’s Cross in centre which is symbolic of Indian Navy’s historic association with United Kingdom. The first change to the Indian Navy Ensign, post-independence was made in 1950, where in the Indian tri colour was inserted on the left top corner.
2. It may be recalled the other aircraft carrier of Indian Navy INS Vikramaditya had visited Colombo in January 2016, generated huge interest amongst the locals and strengthened the bonds of friendship between the two countries. In continuation of India’s maritime cooperation with Sri Lanka, a Dornier Maritime aircraft was gifted to Sri Lanka Air Force on 75thAnniversary of India’s Independence on 15 August 2022. The Dornier will enhance endeavours of Sri Lanka for maritime security in the region.
3. The commissioning of the first indigenous 45,000 Tons Aircraft Carrier INS Vikrant has showcased the quantum leap by India to design, build and operate an Aircraft Carrier, which is the most advanced and extremely complex platform operated at sea. The ship is 262m long and can cruise upto 28 knots. The ship can carry more than 30 aircraft and helicopters onboard including indigenous Light Combat Aircraft (LCA) and Advanced Light Helicopter (ALH).
4. Indian Navy has been actively engaged with Sri Lanka Navy in facilitating engagements like Deck Landing Practice and Copilot experience on indigenous ALHand Sail Training Experience onboard INS Tarangini for SLAF/ SLN personnel in March 2022.In line with the Government of India’s ‘Neighbourhood First Policy’ spares for SLNS Sagara, SLCG Suraksha and AN 32 are being, provided on grant basis by Government of India to ensure optimal operational availability of platform and thereby improve security in the region.
5. Supporting Sri Lanka’s fight against COVID-19, Indian Naval Ship Shakti arrived in Colombo on 22 August 2021 carrying100 tons of Liquid Medical Oxygen (LMO) from Visakhapatnam. Further, Indian Naval Ship Gharial was specially tasked for expeditious delivery of medical supplies to Sri Lanka in April and June 2022. To commemorate 75 years of India’s Independence, an Artificial Limb Camp, sponsored by Government of India was conducted by Bhagwan Mahaveer Viklang Sahayata Samiti (BMVSS), an Indian NGO for the disabled defence personnel of Sri Lanka Armed Forces in Colombo and Jaffna in February-March 2022.
6. Towards capability and capacity building measures for Sri Lankan Armed Forces, agreements were signed for provisioning of 4000T Floating Dock and installation of Maritime Rescue Coordination Centre for SL Navy in March 2022. The initiatives by Government of India would help in realisation of the vision ‘Security and Growth for All in the Region’ (SAGAR).
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Colombo
2 September 2022