Home World As the forex crisis drives up food prices in Sri Lanka, the...

As the forex crisis drives up food prices in Sri Lanka, the country declares an economic emergency.

As the forex crisis drives up food prices in Sri Lanka, the country declares an economic emergency.

This year, the Sri Lankan rupee has lost 7.5 percent against the US dollar. The news follows a spike in the price of staple foods including sugar, onions, and potatoes. In August, month-on-month inflation increased to 6%, owing primarily to increasing food prices.

Key Highlights

  • The Sri Lankan rupee has lost 7.5 percent against the US dollar this year.
  • In August, month-on-month inflation increased to 6%, owing primarily to increasing food prices.
  • Authorities claim they would take control of basic food supplies, such as rice and sugar, and set prices in an attempt to curb soaring inflation.
  • The emergency measures, which cover a wide range of issues, went into effect on Tuesday.

Sri Lanka has declared an economic emergency following a sharp drop in the value of its currency, which has resulted in a rise in food costs.

According to the BBC, authorities claim they would take control of basic food supplies, such as rice and sugar, and set prices in an attempt to curb soaring inflation.

This year, the Sri Lankan rupee has lost 7.5 percent against the US dollar. The emergency measures, which cover a wide range of issues, went into effect on Tuesday.

The government has chosen a retired army general as commissioner of critical services, with the authority to seize supplies held by traders and retailers.

The president of the island nation, Gotabaya Rajapaksa, announced in a statement that “authorized officers will be allowed to take actions to deliver basic food goods at a concessionary pricing to the public by purchasing inventories of vital food items.”

“To avoid market inconsistencies, these items will be offered at government guaranteed pricing or based on the customs value on imported goods,” the statement continued.

According to the BBC, the statement came after a rise in the price of basic foods such as sugar, onions, and potatoes.

Long lines have formed outside stores owing to shortages of other items such as milk powder, kerosene, and cooking gas.

The increase in the foreign currency rate, according to the country’s Department of Census and Statistics, was one of the causes for increased prices of numerous necessary commodities over the last year.

In August, month-on-month inflation increased to 6%, owing primarily to high food prices, according to the department.

According to the research, the country, which is a net importer of food and other goods, is experiencing an increase in coronavirus infections and deaths, which is affecting tourism, which is one of the country’s primary foreign currency earners.

Sri Lanka’s economy dropped by a record 3.6 percent last year, owing in part to a drop in tourist numbers.

The government put an import restriction on autos and other products in March of last year in an attempt to curb the outflow of foreign currency.

rks7546
Sri Lanka declares economic emergency to contain food prices amid forex crisis. This is bad news for India. Most pr… https://t.co/uNBpqvV8vu

shaqueelsinai
RT @paranjoygt: Sri Lanka declares food emergency as forex crisis worsens https://t.co/I7DOFfyh7N via @AJEnglish

acoindetective
Sri Lanka declares economic emergency to contain food prices amid forex crisis https://t.co/emmqwFyqDZ

M_Stamatis
RT @anadoluagency: Sri Lanka declares emergency over food, forex crisis https://t.co/CjQxoTqyo4 https://t.co/rI7k2Jr4wR

haque_shahidul
RT @anadoluagency: Sri Lanka declares emergency over food, forex crisis https://t.co/CjQxoTqyo4 https://t.co/rI7k2Jr4wR

mukmook
RT @anadoluagency: Sri Lanka declares emergency over food, forex crisis https://t.co/CjQxoTqyo4 https://t.co/rI7k2Jr4wR

anadoluagency
Sri Lanka declares emergency over food, forex crisis https://t.co/CjQxoTqyo4 https://t.co/rI7k2Jr4wR

UltimAddy
Right time for Modi to step in and give a loan. Sri Lanka declares food emergency amid forex crisis https://t.co/vcwPfcHl9I

theasiatodayorg
Sri Lanka declares emergency over food, forex crisis https://t.co/78aGOgXIBJ #covid #pandemic… https://t.co/Q4GGRYNBrC

LEAVE A REPLY

Please enter your comment!
Please enter your name here