Sri Lanka Economic Crisis: Due to the deepening economic crisis in Sri Lanka, people are now losing their temper. They have staged a massive protest in front of the President’s residence.
Sri Lanka is facing its biggest economic crisis till date. The situation has become so bad that rice powder of 500 rupees per kg and 400 grams of milk powder is being available for more than 700 rupees. And even to get this stuff, people have to stand in long queues for hours. People are not even getting electricity, due to which they have come out on the streets against the government, losing their cool. Police imposed overnight curfew in many parts of Colombo, the main city of Sri Lanka. Along with this, 45 of the protesting people were arrested.
Police fired tear gas and water cannons on protesters who gathered in front of his residence on Thursday to demand the resignation of President Gotabaya Rajapaksa amid the ongoing economic crisis. Due to which at least 10 people have been injured. Due to the lack of foreign exchange in Sri Lanka, there has been a shortage of essential items like fuel. There has also been a shortage of LPG and power cuts are being done for 13 hours a day. The protesters raised slogans against the Rajapaksa government. The people involved in the protest said that the foreign exchange crisis has become more serious due to the mismanagement of the government.
Will discuss with IMF officials
A spokesman said on Thursday, the International Monetary Fund (IMF) will begin discussions with Sri Lankan officials on a possible loan program in the coming days. The government is looking for a way out of the crisis. To save electricity, the government is turning off the street lights. Power Minister Pavitra Vanniarachi told reporters, “The continuous shortage of diesel has resulted in more power cuts and trading in the main stock exchange has also come to a halt. The power cut is adding to the suffering of Sri Lankans already grappling with the shortage of essential commodities.
Inflation rising rapidly in Sri Lanka
The statistics department said on Thursday that retail inflation has reached 18.7 per cent in March as compared to the same period a year ago. Inflation hit 30.2 per cent in March, partly due to currency devaluation and last year’s ban on chemical fertilisers. This decision was later overturned. Dimantha Mathew of First Capital Research said inflation is at its worst in more than a decade. However, India is giving all possible help to Sri Lanka in this difficult time. A diesel shipment is expected to arrive from India on Saturday under a $500 million line of credit. However, even this is not likely to completely fix the problem.
