The Central Bank of Sri Lanka has reduced its inflation target range by 200 basis points for 2015, and will try to keep annual CPI inflation between 2% and 4% in the coming 12 months.
The move follows a drop in inflation from 4.4% to 2.1% in 2014, and governor Ajith Nivard Cabraal attributed the change to the expectation of a "reduction in the prices of commodities".
After 2015, the central bank expects inflation of between 3% and 5% moving forwards, and will adjust its target accordingly. "This
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