Severe financial crisis in Sri Lanka???
Inflation remains a global problem these days but it is in the unbridled condition in India's southern neighboring country Sri Lanka. In the country, one liter of milk has crossed 150 while a packet of bread has crossed 150. Among vegetables, the price of brinjal has increased by 51% while the price of onion has increased by 40% and Potato is at Rs.200/kg.
Significantly, there is a severe financial crisis in Sri Lanka. The country's foreign exchange reserves have declined by 70%. The foreign exchange reserves in 2019 were $7.5 billion while the current forex reserves are $2.36 billion.
The situation of 'crisis' in Sri Lanka
There is a severe crisis in this island country these days. The supply of LPG gas is stopped in many places. The milk bread crisis has arisen in the country. Over a thousand bakeries are closed, many power plants have also had to be closed. The countrymen are getting electricity only for 7 hours.
Harpo Gunaratne, associated with the restaurant collective of Colombo city, said that the whole problem is being caused by the fall of the rupee against the dollar. Because of this, consumers have to pay an inflated price for everything. They say that restaurants will not be able to bear this burden. Many people want to collect flour, meat, butter, and cheese in bulk but it is not possible. However, 200 Sri Lankan rupees come in 1 dollar.
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