The island\u2019s tourism-dependent economy has been hammered by the pandemic
\n Colombo
\nSri Lanka consumer prices shot up a record 14 per cent in December, surpassing a previous high of 11.1 from a month earlier, official figures showed on Saturday as food and fuel shortages worsen.
\nSenior ministers warned parliament earlier in the week of a growing food crisis with rice harvests due in March expected to be drastically lower after an agrochemical import ban last year saw farmers abandoning more than 30 per cent of agricultural land.
\nThe island\u2019s tourism-dependent economy has been hammered by the pandemic with the government imposing broad import restrictions to avert a foreign exchange crisis, triggering a shortage of essential goods.
\nThe Census and Statistics Department said year-on-year inflation in December was the highest since the National Consumer Price Index (NCPI) was established in 2015.
\nIt said food inflation also hit a record 21.5 per cent, up from 16.9 per cent in November and 7.5 per cent a year ago.
\nThe use of substandard organic fertiliser and pesticides has sharply reduced vegetable and fruit crop yields.
\nAfter intense farmer protests, the government lifted its agrochemical import ban in October, but banks are still short of dollars to finance imports.
\nSupermarkets have been rationing milk powder, sugar, lentils and other essentials for months with a top official warning last month of more restrictions to feed those most in need.
\nBut agriculture ministry secretary Udith Jayasinghe was sacked hours after calling for a formal rationing scheme to ensure that mothers, the elderly and the sick could be fed in the months ahead.
\nSri Lanka\u2019s foreign reserves have tanked since President Gotabaya Rajapaksa took office in 2019, going from $7.5 billion to $3.1 billion at the end of December.
\nThe current figure is enough to finance less than two months of imports.
\nInternational rating agencies have downgraded Sri Lanka over fears of default on its $35 billion foreign debt. The government has insisted it can meet the obligations.<\/p>\n","protected":false},"excerpt":{"rendered":"
The island\u2019s tourism-dependent economy has been hammered by the pandemic Colombo Sri Lanka consumer prices shot up a record 14 per cent in December, surpassing a previous high of 11.1 from a month earlier, official figures showed on Saturday as food and fuel shortages worsen. Senior ministers warned parliament earlier in the week of a […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-240240","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n