JUNEASIA BUSINESS OUTLOOK9Sri Lanka's consumer price inflation increased to 2.7 percent in April from 2.5 percent in March, according to official data released on Tuesday. The National Consumer Price Index (NCPI), which measures broad retail price inflation and is published with a 21-day lag each month, showed that food prices rose 3.3 percent in April, down from 5 percent in March. Non-food item prices increased by 2.3 percent in April, up from 0.7 percent in March, as the effects of a 22 percent reduction in household power tariffs implemented in March diminished.Analysts predict that overall inflation will remain relatively stable over the next three months, expecting that global oil prices and local demand-side pressures will stay subdued. Inflation is anticipated to stay within the Central Bank of Sri Lanka's (CBSL) target of 5 percent. Dimantha Mathew, head of research at First Capital, suggested that inflation might rise slightly due to higher food prices, potentially reaching 4 percent to 4.5 percent, but emphasized that this increase is not a major concern.Sri Lanka experienced record-high inflation, peaking at 70 percent in September 2022, following the worst financial crisis in decades triggered by a significant drop in foreign exchange reserves. However, with the assistance of a $2.9 billion program from the International Monetary Fund, the country's economy has gradually stabilized and is projected to grow by 3 percent in 2024 after two consecutive years of contraction. The Central Bank of Sri Lanka has responded to slowing inflation by cutting policy rates by 700 basis points since last year to foster economic growth. South Korea and Britain are hosting a major international summit on artificial intelligence in Seoul this week, with a focus on AI safety. The AI Seoul Summit, which begins on Tuesday (May 21), follows the inaugural global AI safety summit held at Bletchley Park in Britain last year. That event saw numerous countries expressing their concerns to leading AI firms about the risks their technologies might pose.This year's summit will feature representatives from prominent AI companies, including OpenAI (the maker of ChatGPT), Google DeepMind, French AI firm Mistral, Microsoft, and Anthropic. Safety is a key theme at the summit, reflecting ongoing concerns about the potential misuse of AI.The release of ChatGPT in 2022 marked a significant moment in the AI industry, sparking a wave of investment and development in generative AI. These models can create text, photos, audio, and video from simple prompts and are seen by many as transformative tools that can enhance various aspects of life and business.However, there are significant concerns about the misuse of AI technologies. Critics, rights activists, and governments have warned about potential dangers, such as the spread of fake news and the creation of "deepfake" images and videos, which can manipulate voters and harm political processes.The AI Seoul Summit aims to address these issues by fostering discussions between governments and AI firms to develop safer AI practices and mitigate risks associated with the technology. SRI LANKA'S CPI RISES TO 2.7 PERCENT IN APRILSOUTH KOREA & BRITAIN TO JOINTLY HOST INTERNATIONAL SUMMIT ON AINEWSROOMJUNEASIA BUSINESS OUTLOOK9
< Page 8 | Page 10 >