by Sanath Nanayakkare

The Central Bank forecasts the headline inflation to remain negative in the next few months, deeper than previously projected, but expects it to turn positive thereafter and gradually align with the targeted level of 5% over the medium term, aided by appropriate policy measures.

Attributing larger downward adjustments in energy prices and reduction in volatile food prices to the current negative headline inflation, the Central Bank, however, is keeping its eye on upside and downside risks to inflation projections in the near to medium term.

The Bank says possible upward pressures on the headline inflation could stem from six factors; namely:

• Possible upward pressures on global food and energy prices amidst geopolitical uncertainty
• Possible realisation of demand for higher wages
• Possible adverse weather conditions that could affect agricultural production
• Any deviation from the envisaged fiscal consolidation path
• Possible rupee depreciation at higher levels
• Possible sticky global inflation due to the policy changes in the USA And in relation to downside risks to inflation projections, the Bank cites two key reasons among others, namely.
• Possible price reductions of essentials
• The sustained impact of diminished purchasing power of people

In line with the Central Bank’s near-term projections, the headline inflation remained in negative territory for the third consecutive month, recording a deflation of 2.1% in November 2024 compared to the deflation of 0.8% in October 2024.

Non-Food inflation (Y-o-Y) decelerated further to -3.3% in November 2024 from -1.6% in October 2024. Meanwhile, Food inflation (Y-o-Y) decelerated to 0.6% in November 2024 from 1.0% October 2024. On a month-on-month basis, the CCPI recorded a decline of 0.25% in November 2024 due to 0.02% reduction in the prices of items in the Food category and 0.23% reduction in the prices of items in the Non-Food category.

Meanwhile, core inflation (Y-o-Y), which reflects the underlying inflation trends in the economy, moderated further to 2.7% in November 2024 from 3.0% in October 2024.

The Island Financial Review asked the Central Bank at the press conference last week whether the continuing disinflation would have adverse impacts on production, corporate profitability and labour recruitment and hiring.

Dr. Chandranath Amarasekara- Assistant Governor, Central Bank replied,” We do not expect disinflation to continue for such a long time to have an impact on production. By the end of the second quarter next year, we will see the end of disinflation.”

The four influencers ‘hold sway’ over an audience of more than 1.5 million

In an exciting initiative to bolster Sri Lanka’s tourism industry, the Sri Lanka Tourism Promotion Bureau (SLTPB) is set to host four prominent Australian-based social media influencers in December 2024. The campaign aims to capture the allure of Sri Lanka through the eyes of these digital content creators, whose combined reach spans millions of followers across Instagram and TikTok. The endeavor promises to spotlight Sri Lanka as a premier destination for travelers seeking unique cultural, natural, and luxury experiences.

From December 4 to 16, 2024, the influencers will embark on a captivating 12-day journey across the island, visiting iconic destinations such as Negombo, Trincomalee, Dambulla, Habarana, Sigiriya, Kandy, Nuwara Eliya, Ella, Little Adam’s Peak, Yala National Park, Mirissa, Galle, and Colombo. Their travel experiences, captured through photos, videos, and stories, will highlight the island’s rich heritage, diverse landscapes, and unparalleled hospitality.

The four influencers—Luana Soares Ostling, Simran Gulati, David Yiu Wai Chin, and Dylan Mahoney—bring unique perspectives and diverse content styles to the table. Luana Soares Ostling, with her expertise in fashion, lifestyle, and luxury travel, and over 1 million followers on Instagram, is expected to offer an aspirational view of Sri Lanka’s luxury offerings. Simran Gulati, a well-known model and actress, will highlight the intersection of wellness, beauty, and travel. Her 210,000 Instagram followers and collaborations with global brands such as Giorgio Armani and her media presence are sure to capture the attention of affluent Australian tourists.

Meanwhile, David Yiu Wai Chin, an influencer and professional photographer, will use his skills to create stunning visual content that showcases Sri Lanka’s landscapes and cultural heritage. With 161,000 followers on Instagram, David’s creative photography is bound to capture the beauty of Sri Lanka in a way that resonates with his audience. Lastly, Dylan Mahoney, known for his travel and lifestyle content on Instagram and TikTok, will focus on the authentic, real-world experiences that Sri Lanka has to offer, particularly for younger, adventure-driven travelers. Dylan boasts 46,900 Instagram followers and 101,000 followers on TikTok, and his content blends personal narratives with vibrant visuals.

The Commercial Bank of Ceylon has unveiled its annual year-end discounts bonanza for credit and debit card holders, heralding another season of great bargains.

The Bank has announced that 4,000 merchant outlets across Sri Lanka will offer discounts of up to 50% on selected days up to 31st December 2024, exclusively to its cardholders.

These discounts will be offered by 187 merchant partners retailing clothing and fashion accessories, 62 lifestyle products partners, 26 partners retailing shoes and leatherware, 74 hotel partners, 22 jewellery partners, 18 healthcare partners, nine salon, spa and cosmetics partners, five supermarket partners, nine automobile partners, six watches and accessories partners, and seven dining partners, the Bank said.

Additionally, 90 online vendor partners will offer discounts to ComBank credit and debit card holders during the promotion period.

Commenting on the promotion, the Head of Commercial Bank’s Card Centre Nishantha De Silva said: “Our seasonal card promotion gets bigger every year, with more merchant partners joining the programme as the cardholder base keeps growing. This has made the Commercial Bank card promotion one of the most anticipated in the industry, as well as one of the most varied in terms of the products and services on offer. It’s an excellent opportunity to save while celebrating the festive season.”

He said the participating merchants represent the largest collection of offers this season, with numerous discounts available across a wide range of outlets, providing amazing benefits to customers.