Sri Lanka reduces inflation target range by 200bp
Inflation range was established for the first time in 2014
The Central Bank of Sri Lanka has reduced its inflation target range by 200 basis points for 2015, and will try to keep annual CPI inflation between 2% and 4% in the coming 12 months.
The move follows a drop in inflation from 4.4% to 2.1% in 2014, and governor Ajith Nivard Cabraal attributed the change to the expectation of a "reduction in the prices of commodities".
After 2015, the central bank expects inflation of between 3% and 5% moving forwards, and will adjust its target accordingly. "This
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