Sri Lanka's ecomomic crisis leading to price hikes and shortages
Sri Lanka's foreign exchange reserves have been dropping and as a result the government has been forced to restrict the import of several essential commodities.
Sri Lanka, an island nation of 22 million people, is facing an unprecedented economic crisis. It began in 2020, shortly after President Gotabaya Rajapaksa took power. Sri Lanka's foreign exchange reserves have been dropping and as a result the government has been forced to restrict the import of several essential commodities - including food items - in a desperate bid to hang on to its vital dollar reserves. Increasing fuel and freight costs, falling tourism and a decrease in the dollars sent back by Sri Lankans living abroad, affected by the pandemic themselves, have exacerbated the problem.
Jamila Husain, deputy editor of the Daily Mirror in Colombo, describes the problems the island is facing. She says there is now a crippling shortage of essential items. Two people have died while waiting in queues for fuel, exams for millions of school students cancelled for lack of printing paper, there are little or no gas supplies for people's homes, and there have been power cuts for as much as five hours a day.
"The queues are getting longer, two people have died, people don't have food to eat."
Photo: A boy holds empty containers as he waits with his family members to buy kerosene oil in Colombo, Sri Lanka, March 2022 Credit: Reuters
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