According to the National Consumer Price Index, food prices rose by 6.3 per cent in December, while non-food prices rose by 1.3 per cent.
Highlight
- Sri Lanka’s benchmark inflation rate rises to 14 percent in December 2021
- Food prices increased by 6.3 percent in December while non-food prices increased by 1.3 percent
- Billion dollar credit loan facility to be used to avert food crisis
Sri Lanka’s benchmark inflation rate as measured by the National Consumer Price Index rose to 14 per cent in December 2021, up from 11.1 per cent, the Government Statistics Office said on Saturday amid a severe foreign exchange crisis. It was for another. Inflation in November registered double-digit growth for the first time since the index was compiled in 2014.
According to the National Consumer Price Index, food prices rose by 6.3 per cent in December, while non-food prices rose by 1.3 per cent.
“In the 12 months to December 2021, the food sub-index was up 21.5 percent, while non-food also rose 7.6 percent,” the statistics office said in a statement.
As the COVID-19 pandemic spread in 2020, the government imposed import restrictions to prevent depletion of foreign reserves. Sri Lanka is currently dependent on Indian financial aid and loans are being provided for fuel and food imports.
The island nation is currently facing a severe foreign exchange crisis with falling reserves. The country is facing a shortage of almost all essential commodities due to paucity of dollars to pay for imports. Additionally, power cuts are made during peak hours as the state power unit is unable to obtain fuel to run the turbines.
The state fuel unit has stopped supplying oil as the electricity board has huge unpaid bills. The sole refinery was recently shut down because it was unable to pay dollars for crude imports. Earlier this month, the Indian government announced a $1 billion aid package to Sri Lanka, among other balance of payments support.
The multi-billion dollar credit line facility is to be used to avert the food crisis while allowing the import of goods and medicines. Additionally, there will be USD 500 million to import fuel from India.
The government of Sri Lanka is also in talks with China to overcome the current economic crisis. During Chinese Foreign Minister Wang Yi’s visit to Colombo earlier this month, President Gotabaya Rajapaksa solicited Beijing’s assistance in easing his country’s deepening foreign exchange crisis and increasing foreign debt, saying it would give Colombo its best. capacity will help.
Read also | Indians die in severe cold: Canadian Prime Minister said, working with America to stop smuggling
Read also | 70 killed in Saudi-led airstrikes on rebel-run prison in Yemen
,