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Sunday, 08 April 2012 - 12:43
Central Bank manages to maintain inflation
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Sri Lanka's central bank managed to keep inflation measured by the Colombo Consumer Price Index low by Sri Lanka's past standards, but it was higher than levels seen in countries with more stable exchange pegs with the US dollar.

Critics have said that a key reason for Sri Lanka's steep inflation spikes have been a failure to pass on oil price increases to the economy.

Analysts have also warned that Sri Lanka's Colombo Consumer Price Index, which has been manipulated several times to understate inflation, may be misleading policymakers.

However Sri Lanka also maintains a currency peg to the US dollar which comes to the rescue to the people.

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