Supermarkets have for months rationed powdered milk, sugar, lentils and other essentials.
Colombo, Sri Lanka:
Sri Lanka’s inflation hit a record 11.1% in November, official data showed on Wednesday, as authorities warned a worsening economic crisis could send wage rationing. real increase.
The island’s tourism-dependent economy has been hit by the pandemic and the government has imposed an extensive import ban to increase foreign exchange reserves, causing shortages of essential goods.
Supermarkets have for months now split rations for powdered milk, sugar, lentils and other essentials as commercial banks run out of dollars to pay for imports.
On Wednesday, official data showed prices surging at their fastest rate since the National Consumer Price Index (NCPI) was launched in 2015, with food prices up 17% year on year. before.
Authorities may have to impose more food rations and seek foreign aid to help the poorest, Agriculture Minister Udith Jayasinghe told reporters.
“We may have to borrow grains like corn from friendly countries and think about how to distribute the food so that mothers and sick people can eat it,” he said.
“Others may have to make sacrifices.”
But within hours Jayasinghe was replaced by another official, President Gotabaya Rajapaksa’s office announced, without saying why he was fired.
Food shortages have been worsened by the government’s ban on agrochemical imports, which was lifted last month after widespread crop failures and violent farmer protests.
Sri Lanka had foreign exchange reserves of just $1.58 billion at the end of November, down from $7.5 billion when Rajapaksa took office in 2019.
The central bank has called for foreign currency – even the loose change people can have after returning from overseas travels.
Earlier this week, rating agency Fitch downgraded Sri Lanka due to concerns about a government default on its $26 billion worth of foreign debt. The government insists it can meet its obligations.
(This story has not been edited by NDTV staff and was automatically generated from the feed provided.)
