Sri Lanka in an Inflation alert after suddenprice hikes
Sri Lanka’s today’s announcement of a 350.0 rupeesprice hike in domestic gas cylinders, 163.0 rupees per kg of milk powder and 70.0rupees increase per bag of cement all raises question on inflation, said the financialanalysts.
Prices of domestic gas cylinders as well as imported milkpowder will be increased with effect from midnight today, Consumer AffairsMinister Johnston Fernando said.
The Finance Ministry yesterday imposed a levy of 15 per cent or 92 rupees(whichever is higher) on a kilogram of imported milk powder, excepting infantmilk powder.
Tokyo Cement, Laugfs Gas, Lanka Milk Foods, Nestle Lankaand Lanka Cement would be the direct beneficiaries of the price hike, ArrangaStock Brokers said in a weekly Stock Market report.
Sri Lanka's inflation asmeasured by consumer prices in Colombojumped to a seven-month high in April, figures released last week by theStatistics Department of the Central Bank showed.
The inflation as measured by year-on-year percent change increased to 6.1percent in April 2012 from 5.5 percent in March.
The rise in inflation is mainly due to the increase in food prices due toseasonal demands placed by the New Year festivities during the month, theCentral Bank said.