The World Bank's Country Director for the Maldives, Sri Lanka, and Nepal, Faris Hadad Zervos, has said that the impact of inflation on the Maldives will be less.
Speaking to the local media Dhauru, Faris Hadad Zarvos said the Maldives would also be affected by the increase in commodity prices. He said inflation would rise to 3.5 percent this year from an average of 0.5 percent over the past five years, making the impact on low-income people greater.
However, the price of basic food items will remain stable in the market as the subsidy is being given, and so the true impact of inflation will be less, he said.
The Country Director, who frequently travels to the Maldives, praised the economic measures being taken by the government. He said the Maldives is now heading in the right direction and that he supports the government's efforts to increase GST and change subsidy policies.
Recently, the International Monetary Fund (IMF) has also expressed its support for the government's efforts to increase the TGST and GST.