Sri Lanka posts record growth

The Sri Lankan economy recorded its highest post-independence growth of 8.3 per cent last year beating the previous record of 8 per cent in 2010, the Central Bank said on Friday. In a statement following its monetary policy review meeting on Thursday evening, the bank said the record growth in 2011 was boosted by increased contributions from the industry and services sectors. Sri Lanka achieved independence from British rule in 1948 but the island nation suffered 30 years of war with Tamil Tigers till the rebels were finally defeated in 2009, reported Xinhua. Since then Sri Lanka’s economy has seen a drastic improvement with the country focusing most of its resources on development. The Central Bank said that while year-on-year non-food inflation increased in March 2012 due to the full impact of the adjustment of domestic energy prices and bus fares, year-on-year food inflation remained negative for the third consecutive month. Overall, the year-on-year change in the Colombo Consumers’ Price Index increased to 5.5 per cent in March 2012 from 2.7 per cent in February.