Central Bank of Sri Lanka - Annual Report 2005

According to the Central Bank of Sri Lanka's Annual Report 2005, Sri Lanka's economy demonstrated its resilience once again in 2005 by growing at a rate of 6 per cent, exceeding expectations in the immediate aftermath of the tsunami disaster of 2004.

Inflation was subdued mainly through prudent monetary policy measures supported by favourable developments in aggregate supply. Thus, inflation declined from a peak 15.9 per cent in February 2005, to reach 8 per cent by December 2005. The stability

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