Sri Lanka’s inflation in the capital Colombo accelerated to 15.1 percent in February 2022 from 14.2 percent in December, a 13-year high, after two years of money printing compounded by a commodity bubble fired by the US Federal Reserve.
In the month of February 2022, Sri Lanka Colombo Consumer Price Index, the most widely watched index rose 1.1 percent to 160.1 points after rising 2.4 percent a month earlier.
Sri Lanka has been printing money to keep interest rates down and expanding both reserve money and broad money since February 2020, after expanding the budget deficit by cutting taxes.
Sri Lanka printed 1.2 trillion rupees in 2021, a part of which was to repay debt buy reserves from the central bank as interest rates were too low to collect inflows from the current account.