SRI LANKA NEWS IN BRIEF (MAY 2018) – Compiled by Victor Melder

Victor Meldor - eLanka

Colombo CPI continued to ease, settling below 4%, thanks to the continued moderation in food prices, which grew at its slowest in the past two years. Food prices eased on a sequential basis as well, led by vegetables, sea fish, onions and coconut. Non-food prices on the other hand, showed mild signs of pick up after easing for six continuous months. ‘Alcohol and beverage’, health, transport and recreation index picked up both on an annual and sequential basis, while that of ‘clothing and footwear’ eased. Core inflation mirrored this mild pick-up. Recent trends of moderation in food prices along with the statistical impact of last year’s high base is expected to keep inflation within the central bank’s target range of 4-6%. We forecast inflation to average 4.3% in 2018. The Central Bank of Sri Lanka in its April meeting reduced the upper bound of the policy rate corridor, i.e. cut the Standard Lending Facility Rate (SLFR) by 25bps to 8.5%. Easing inflation, stabilizing inflation expectations, cooling credit growth, and weak economic growth in 2017 warranted a reduction in the policy rate, according to the CBSL. (Daily Island 1.5.2018)

The funeral of world renowned film producer Dr. Lester James Peries will be held at 3 pm today at Independence Square with full State patronage. The remains will be kept at Independence Square from 12 noon to 3 p.m. for the public to pay their last respects. Internationally acclaimed cinematic genius Dr. Lester James Peries passed away on Sunday night, while receiving treatment at a private hospital in Colombo. He was 99. Large crowds, including artistes and politicians are expected to participate in the funeral today. Lester James Peiris was born to a reputed Roman Catholic family in Dehiwala on April 5, 1919. He was eleven years old when he was gifted a 8 mm Kodasco projector by his father. He started writing to the blue pages of the Ceylon Daily News at the age of 17. Rekhawa,” his debut film production showed his extraordinary knowledge in the technique of film industry in December 1956 earned him a commendable reputation as the best production of Sri Lankan Cinema. (Daily News 2.5.2018)

Plantations Minister Naveen Dissanayake said yesterday that the ban on glyphosate had been lifted for tea and rubber plantations from yesterday. However, the ban would be in force as regards paddy and other cultivations, the minister told a press conference in Colombo. Glyphosate was banned in 2015. Independent MP Ven Athuraliye Ratana has stated that he would take to the streets against the government if the ban on glyphosate is lifted. The tea and rubber planters continued to plead with the government to lift the ban as their cultivations suffered severely because of the ban as traditional use of labour to remove weeds was expensive. (Daily Island, 3.5.2018)

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