Amidst the pandemic and the rising variants, Sri Lanka has declared an economic emergency across the country. This comes after a steep fall in the value of the country’s currency which further caused a spike in food prices.
Authorities To Reportedly Take Control Of Rising Inflation
As per the latest reports from the BBC, the authorities will be taking over the supply of basic food items like rice, sugar, etc. They would also set prices in order to control the rising inflation across the country.
The Sir Lankan rupee has fallen by 7.5 percent against the US dollar this year. The wide-ranging emergency measures came into effect on Thursday. As of now, a former army general has been appointed by the government as the commissioner of essential services. They have been given the power to seize the stocks held by the traders and the retailers.
In a statement released by the President of Sri Lanka Gotabaya Rajapaksa, he said that the authorised officers have been empowered to provide essential food items at reduced prices to the public.
He further said that the items will be provided at the prices guaranteed by the government or based on the customs value on the imported goods to prevent market irregularities. The announcement comes after the cost of the basic food essential items like sugar, onions and potatoes.
Following the shortages of other goods like milk powder and cooking gas, many of the shops saw long queue outside.
Foreign Exchange Rate: One Of The Reasons Behind Rising Prices Of Essential Items
The Country’s Department of Census and Statistics said that one of the reasons behind rising prices of many of the essential items over the last year is increase in foreign exchange rates. The department said that the month-on-month inflation rose to 6 percent in August.
Following a drop a tourist numbers because of the pandemic and restrictions, Sri Lanka’s economy further shrank by 3.6 percent last year.
