Friday, February 14, 2025
HomeBusinessCash-strapped Sri Lanka struck by record inflation

Cash-strapped Sri Lanka struck by record inflation

Cash-strapped Sri Lanka hit by record inflation

COLOMBO: Crisis-hit Sri Lanka’s inflation struck a record high for the sixth successive month, main data revealed on Friday as the government asked the IMF for an immediate bailout.
The broad-based National Consumer Rate Index (NCPI) increased 21.5 percent year-on-year in March, more than 4 times the 5.1 percent inflation of a year earlier.
Food inflation in March stood at 29.5 percent, according to the most current data from the Department of Census and Data.
The figures are most likely to increase even more: the state-run oil business has consequently raised the cost of diesel, typically used in public transport, by 64.2 percent.
The worsening economic crisis has led to clashes at nationwide presentations contacting President Gotabaya Rajapaksa to step down over mismanagement and corruption.
Sri Lanka asked the International Monetary Fund today for emergency situation assistance, but was told that the South Asian nation’s $51 billion external financial obligation was “unsustainable” and must be “restructured” before any aid.
“When the IMF identifies that a country’s debt is not sustainable, the nation needs to take steps to restore debt sustainability prior to IMF financing,” the Fund’s nation director Masahiro Nozaki stated in a statement on Wednesday.
“Approval of an IMF-supported program for Sri Lanka would require adequate assurances that financial obligation sustainability will be brought back.”
The federal government has actually announced a default on its foreign financial obligation and said valuable forex will be reserved to finance vital food and medicines.
Cops clashed with protesters in main Sri Lanka on Tuesday, eliminating one of them and wounding nearly 30.
At least 8 people have actually also passed away waiting in long lines for fuel in the previous six weeks.
The nation’s foreign exchange shortage has caused a slowing down of imports, including fundamentals.
Shops have actually rationed the amount of rice, milk powder, sugar, lentils and tinned fish offered to consumers.
Sri Lanka’s economy has collapsed given that the start of the pandemic, with a nosedive in tourism profits in addition to foreign worker remittances.

FOLLOW US ON SOCIAL MEDIA

FacebookTwitterInstagram

Released at Fri, 22 Apr 2022 03:09:38 +0000

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Recent Comments

chiffon dress design in pakistan on Realme 6 Pro Review | NDTV Gadgets 360
You searched for on Realme X50 Pro 5G Review
Telefoane Mobile Ieftine si Accesorii on Oppo Enco Free True Wireless Earphones Review