Sri Lanka declares an economic emergency to contain food prices amid the currency crisis

COLOMBO, Aug 31 (Reuters) – Sri Lanka has declared an economic emergency authorizing authorities to take stock of basic foodstuffs and set prices, to contain high inflation following a sharp devaluation of their food prices. currency due to a currency crisis.

The president of the island nation, Gotabaya Rajapaksa, on Monday declared an emergency under the public safety ordinance to keep the supply of food such as sugar and rice at fair prices. The emergency went into effect after midnight.

The government has appointed a former army general as commissioner of essential services, who will have the power to seize food stocks from traders and retailers and regulate their prices.

“Authorized officers will be able to take steps to provide the public with essential food products at a dealership price by purchasing stocks of essential foods, including rice, rice and sugar,” according to a press release issued by Gotabaya’s media division.

“These items will be provided at government-guaranteed prices or based on the customs value of the imported goods to avoid market irregularities,” the statement said.

Sri Lanka’s Census and Statistics Department said the rising exchange rate was one of the reasons for the rise in prices of many essential items in the last twelve months.

Monthly inflation in August rose to 6% from 5.7% in July, mainly due to high food prices, the department said.

Sri Lanka, a net importer of food and other commodities, is witnessing an increase in cases and deaths of COVID-19 that has affected tourism, one of its main currency winners.

Report by Waruna Karunatilake in Colombo Written by Aditi Shah Edited by Peter Graff

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