Sri Lanka inflation rises for February, but not worrisome says Central Bank

Sri Lanka's inflation as measured by consumer prices in Colombo rose for the month of February, the figures released by the Statistics Department of the Central Bank showed.

The inflation increased to 7.8 percent in February from 6.8 percent in last month while the Colombo Consumer Price Index increased by 1.2 percent to 233.9 points from 231.2 points in January 2011.

The annual average inflation increased marginally to 6.1 percent in February from 6.0 percent in January, mostly as a result of the supply-side pressure, according to the Central Bank.

Speaking to Reuters Central Bank Governor Ajith Nivard Cabraal has said that the hike in inflation is however not worrisome although it is more than expected.

The rise inflation is mostly due to supply-side pressure that cannot be controlled and will not be a major concern to the monetary policy, Cabraal has told the Reuters news agency.

It's not a cause of concern, as it is mostly or totally due to the supply side. It's a little more than expected," Cabraal was quoted.

The Central Bank Governor has said that if the inflationary pressures rise from the supply-side the government will be advised to intervene with some measure like tariff-reduction.

However, he has expressed concerns over the rising oil prices in the world market affecting Sri Lanka's economic growth.

"We are a little concerned about the oil prices that are going up a [...]