We seem to have reached galloping inflation with it at 15% last month in February and March is definitely going towards a much higher figure , and the drastic measures taken last week with the devaluation or shall we say the Rupee flexibility will hopefully avoid SriLanka joining Zimbabwe, Venezuela or even Argentina. The traditional savings deposits , fixed deposits or even investment in govt securities will not hedge yourself from the current high inflation that is estimated to be around 25% to 30%. Investment in high dollar earning sectors or high real estate owning companies is a more practical method of beating inflation if not buying gold or hard currency. Sri Lanka is facing a double blow now with shortage in dollarised income through reduced inward remittances through the traditional expat workers and Tourism and the Global situation in Europe pushing up energy and commodity prices has a major increase in cost pushed inflation here in our domestic economy. The slight indication today is the oil and commodity prices easing in world markets with speculation of Europe heading to a recession if the Ukraine crisis further escalates and drags on . Therefore all of the above will eventually have a possitive inflow into the selected counters within the CSE and the devaluation will now technically favor foreign Investments to flow back to the value counters .
