Sri Lanka’s headline inflation surpassed 50 percent in June, setting a new record for the ninth consecutive month, according to official data released on Friday, a day after the IMF urged the nation to unleash soaring inflation and corruption.
In June 2022, the Colombo Consumer Price Index (CCPI) rose to 54.6 percent on an annualized basis, up from 39.1 percent in May 2022. According to the official statement, this increase in year-over-year inflation was driven by monthly increases in both the food and non-food categories.
The CCPI has been setting new monthly highs since October, when year-on-year inflation stood at just 7.6 percent.
The report was released just hours after the International Monetary Fund urged Sri Lanka to rein in inflation and combat corruption as part of attempts to save the country’s collapsing economy, which has been devastated by a foreign exchange crisis.
The IMF said Thursday’s negotiations with Sri Lanka were “constructive,” bolstering hopes for a financial bailout package.
Sri Lanka has closed schools and stopped fueling all but necessary services after years of economic mismanagement.
After 10 days of meetings with Sri Lankan officials, the IMF said it hopes to reach a staff-level agreement on the Extended Fund Facility (EFF) arrangement soon.
