Sat Nov 30 17:55:41 UTC 2024: ## Sri Lanka Sees Record Deflation After 2022 Economic Crisis
**Colombo, November 30, 2024** – Sri Lanka has recorded its highest deflation rate since 1961, with consumer prices falling by 2.1% in November. This follows months of economic hardship stemming from an unprecedented financial crash in 2022, which saw inflation peak at nearly 70% and triggered widespread consumer goods shortages.
The significant deflation, according to the central bank, is primarily attributed to substantial decreases in energy and volatile food prices. The bank anticipates this negative inflation trend to continue for the next few months, before returning to the target level of 5% in the coming months. October and September also saw deflation rates of 0.8% and 0.5% respectively.
The turnaround is partially credited to a $2.9 billion bailout loan from the International Monetary Fund (IMF), coupled with government austerity measures including tax hikes and spending cuts. Newly elected President Anura Kumara Dissanayake has pledged to uphold the IMF program, despite the challenging economic realities. The country continues its recovery from the devastating economic crisis of 2022.
First Piper 