Inflation

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.

The global economic growth is driven by strong economic activity in India, alongside recoveries in Pakistan, Bhutan, Nepal, and Sri Lanka.

The SCL Act, which covers 63 items, imposes taxes at high rates on staple foods such as rice, potatoes, and maize. Critics argue that while these taxes protect domestic agriculture, they also make basic foods costly, exacerbating malnutrition among poor families.

Highlighting positive economic indicators, the Prime Minister noted that the reduction in the policy rate would provide much-needed relief to businesses and investors.