Inflation

This decrease was primarily driven by a significant drop in food and beverage prices, with vegetable prices entering negative territory for the first time in 20 months.

There has been a raging debate in Sri Lanka on the deal, citing it as an expensive deal. The earlier government had agreed to purchase power from Adani’s 484-megawatt wind power project at a rate of 8.26 US cents per unit under a 20-year power purchase agreement.

Georgieva praised Pakistan’s efforts in implementing the IMF-supported program, acknowledging the country’s improving economic performance with rising growth and declining inflation. She recognized Pakistan’s economic recovery and noted that it is on a positive trajectory.

By establishing dedicated police stations, enforcing strict regulations, and enhancing monitoring mechanisms, the government aims to protect consumers from exploitation while ensuring market stability.

Sitharaman said that the Union Budget aims to sustain economic momentum by fostering private investment, stimulating growth in key sectors, and enhancing the spending power of India’s rising middle class.

Sri Lanka's recent economic performance has shown resilience, but challenges persist. The World Bank cautioned that macroeconomic stability is contingent on the consistent implementation of fiscal, financial, and monetary policies.

With vegetable inflation exceeding 40 per cent, consumers face the brunt of soaring costs, while weak market monitoring and governance exacerbate the issue.

Sri Lanka’s central bank embraced deflationary measures that allowed currency appreciation and restored external stability. Critics argue, however, that these gains may be short-lived without structural reforms and tighter inflation targets.