The Central Bank of Sri Lanka (CBSL) in August said the inflation rate would moderate after peaking at about 70 percent as the country’s economy slowed.
Food prices climbed 84.6 percent, and many essential food items have almost doubled in price.
The country’s economy is to shrink to 8.4 percent ““Inflation is expected to taper from September,”
said Dimantha Mathew,
head of research for Colombo-based investment firm First Capital. “However, inflation is only likely to moderate and reach single digits in the second half of 2023.”
Another round of price increases could come from the 15 percent Value Added Tax and 2.5 percent Social Security Contribution Levy, which according to tax experts, could raise the prices by at least 22 percent, due to the cascading effect of the latter when both taxes are taken together.
Parliamentarian Dallas Alahapperuma said about 1.1 million school children have been affected for two years after the program to provide free meals to school children was stopped.
“In some schools, rice banks have been set up by the principals and teachers. The government has been unable to provide free meals to school children for the last two years,”