Inflation skyrockets in Sri Lanka; meals costs at document excessive

Sri Lanka’s benchmark inflation charge, measured by the National Consumer Price Index, accelerated to 14 per cent in December 2021, up from 11.1 per cent, the federal government statistics workplace stated on Saturday, amidst a extreme a international alternate disaster.
This was for the second consecutive month after inflation recorded double digit progress for the primary time in November for the reason that index got here to be compiled from 2014.
Food costs jumped 6.3 per cent whereas non-food costs rose 1.3 per cent in December, in keeping with the National Consumer Price Index.
“The food sub-index was up 21.5 per cent in 12 months to December 2021, while non-foods also rose 7.6 per cent in the months,” the statistics workplace stated in an announcement.
As quickly because the COVID-19 pandemic broke out in 2020, the federal government imposed import restrictions to attempt to cease dwindling of international reserves.
Sri Lanka at present banks on the Indian financial help with credit score traces being made obtainable to finance gas and meals imports.
The island nation is at present going through a extreme international alternate disaster with falling reserves.
The nation is grappling with a scarcity of just about all necessities as a result of lack of {dollars} to pay for the imports.
Additionally, energy cuts are imposed at peak hours because the state energy entity is unable to acquire gas to run generators.
The state gas entity has stopped oil provides because the electrical energy board has giant unpaid payments. The solely refinery was not too long ago shut because it was unable to pay {dollars} for crude imports.
Early this month, the Indian authorities introduced a billion-dollar help bundle along with different stability of fee assist to Sri Lanka.
The billion-dollar mortgage credit score facility is for use to avert a meals disaster whereas permitting for the import of things and medicines. Additionally, there will probably be USD 500 million for importing gas from India.
The Sri Lankan authorities can also be in talks with China to beat the present monetary disaster. During the go to of Chinese Foriegn Minister Wang Yi to Colombo earlier this month, President Gotabaya Rajapaksa requested Beijing’s help in mitigating his nation’s deepening foreign exchange disaster and spiralling exterior debt, saying it can assist Colombo to one of the best of its capability.