The Central Bank of Sri Lanka says that the recently imposed social security contribution tax by the government may have some effect on the rise in the prices of food and non-food items in the coming months.
This tax has been imposed with effect from October 1, 2022.
The latest Economic Trends (2022 Special Events and 2023 Expectations) report released by the Central Bank has revealed that the increase in electricity and water charges will affect the price of many goods and services.
This tax may further increase the general price level.
The central bank also says that the impact of price hikes is greater than the impact on prices of recent price cuts.
Accordingly, the report also shows that it is difficult to expect a slowdown in the increase of consumer price indices in the future.
