Headline inflation as measured by the year-on-year (Y-o-Y) change in the Colombo Consumer Price Index (CCPI, 2013=100)1 declined to 5.2 per cent in April 2020 from 5.4 per cent in March 2020. This was solely driven by the statistical effect of the high base prevailed in April 2019. Meanwhile, Food inflation (Y-o-Y) recorded at 13.2 per cent in April 2020 and Non-food inflation (Y-o-Y) declined to 2.1 per cent in April 2020 from 2.5 per cent in March 2020.

The Central Bank of Sri Lanka observes that the current interest rates charged by licensed banks on pawning advances range from 12% - 17.5% per annum. Considering the necessity to provide relief to low income individuals who are pawning gold jewellery to meet their short-term financing needs due to the adverse economic situation resulting from the COVID-19 outbreak, the Monetary Board of the Central Bank of Sri Lanka has decided to impose maximum interest rates on pawning advances of licensed banks.