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Sri Lanka’s meals costs rose by a document 22.1 % in December, official figures confirmed Saturday, because the nation struggles to finance pressing imports to deal with an acute scarcity of necessities.
The census and statistics division mentioned meals inflation hit an all-time excessive final month on a year-on-year foundation because the Colombo Shopper Worth Index (CCPI) was launched in 2013.
The value will increase in December in comparison with a determine of 17.5 % in November, the earlier document, the division mentioned.
It added that total inflation was additionally at a document 12.01 % in December, the very best because the CCPI index was launched.
President Gotabaya Rajapaksa in his New 12 months message expressed hope of reviving the cash-strapped financial system however didn’t announce measures to handle the crippling overseas change disaster.
“I’m assured that the brand new 12 months will present a chance to additional the steps taken by the federal government to pursue and overcome challenges and strengthen the people-centric financial system,” he mentioned.
Worldwide score companies have downgraded Sri Lanka and raised considerations about its potential to service its debt of $26 billion.
The newest inflation figures have been launched a day after the federal government elevated the worth of milk powder by 12.5 % following an analogous rise in gasoline costs final month.
The island’s tourism-dependent financial system has been hammered by the pandemic and the federal government was pressured to impose a broad import ban to shore up overseas change reserves.
Supermarkets have for months been rationing milk powder, sugar, lentils and different necessities as business banks ran out of {dollars} to pay for imports.
A high agricultural official warned final month of an impending famine and requested the federal government to implement an orderly meals rationing scheme to keep away from such a state of affairs. He was fired inside hours of creating the enchantment.
Meals shortages have been worsened by the federal government’s ban on agrochemical imports, which was lifted in November after widespread crop failures and intense farmer protests.
Sri Lanka had overseas reserves of simply $1.58 billion on the finish of November, down from $7.5 billion when Rajapaksa took workplace in 2019.
This week the federal government drew down a $1.5 billion Chinese language mortgage and claimed reserves had practically doubled to $3.1 billion by the tip of 2021.
The central financial institution has appealed for overseas forex — even unfastened change that folks could have after coming back from abroad journeys.
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