Food prices skyrocket in Sri Lanka, declares economic emergency

This year's Sri Lankan dollar rupee has decreased by 7.5%.

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Food prices skyrocket in Sri Lanka, declares economic emergency

The economic emergency has been proclaimed by Sri Lanka, following a sharp drop in food prices in South Asia’s currency. Offices are saying that in an effort to manage the growing inflation, they would take charge of supplying essential food stools, including rice and sugar. This year’s Sri Lankan dollar rupee has decreased by 7.5%.

Tuesday saw the implementation of a broad range of emergency measures. The Government has nominated a former Army General as a commissary of the vital services, enabling merchants and retailers to seize goods.

“The authorized officers will be able to take steps to provide essential food items at a concessionary rate to the public by purchasing stocks of essential food items,” the president of the island nation, Gotabaya Rajapaksa, said in a statement.

“These items will be provided at government-guaranteed prices or based on the customs value on imported goods to prevent market irregularities,” the statement added

It was reported that essential consumables like sugar, onions, and potatoes were expensive. Due to the lack of other products, like milk powder, kerosene, and cooking gas, the huge lineups outside businesses were also present.

The Census and Statistics Department of the country stated the growth in the foreign exchange rate was one of the causes of rising costs for a large number of important products in the previous year. The department said that month-on-month inflation in August increased to 6%, due mainly to high food prices.

As a net importer, it is shown in instances of coronavirus and mortality, one of the principal foreign exchange investors in the nation, which is a net importer of food and other goods.

Sri Lanka’s GDP fell by 3,6 percent last year, partly as a result of the decline in visitor numbers. In March last year, when it was trying to stop foreign currency exits, the government implemented an import banning on automobiles and other commodities.

Earlier this month, in an attempt to consolidate its currency and assist alleviate high-cost inflationary pressures Sri Lanka was the first government in that area to hike interest rates.

(BBC News)

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Food prices skyrocket in Sri Lanka, declares economic emergency
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This year's Sri Lankan dollar rupee has decreased by 7.5%.
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THE POLICY TIMES
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