New Delhi: Sri Lanka is currently facing an economic crisis. Sri Lanka has declared a state of emergency over the food crisis, as private banks lack foreign exchange for imports. President Gotabaya Rajapaksa on Tuesday declared a state of emergency under the Public Safety Ordinance to prevent hoarding of essential goods, including rice and sugar. Let us tell you that an emergency has been imposed from midnight on Tuesday.
Long lines for essential goods
Emergency has been declared after a sharp increase in the prices of sugar, rice, onion, and potato. Alam is that due to shortage of milk powder, kerosene, and LPG in Sri Lanka, there are long queues outside shops. The government is blaming the traders for hoarding. According to media reports, President Gotabaya Rajapaksa has appointed a top army officer as the Commissioner General of Essential Services to coordinate the supply of paddy, rice, sugar, and other consumer goods.
Penalty for food hoarding increased
The government has increased penalties for food hoarding, but the reduction comes as the country of 21 million grapples with a raging coronavirus wave. More than 200 people are dying in a day due to corona here. Sri Lanka is struggling to repay its huge debt amid the struggle to recover from the Coronavirus pandemic.
Huge fall in Sri Lankan currency
The Sri Lankan currency has fallen 7.5 percent against the US dollar this year. In view of this, the Central Bank of Sri Lanka has recently increased interest rates. The comprehensive measure of the economic emergency is also aimed at the recovery of loans owed by importers to state banks. According to bank data, Sri Lanka’s foreign reserves fell to $2.8 billion at the end of July, from $7.5 billion in November 2019 when the government took power and the rupee lost 20 percent of its value against the US dollar at the time. More is lost.
