Struck by Covid-19 and economic crisis, Sri Lanka declares state of emergency

A worker carries sacks of potatoes to the main market in Colombo on August 31, 2021. AFP - ISHARA S. KODIKARA

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3 min

Struck by the Covid-19 pandemic and an unprecedented economic crisis, Sri Lanka declares a state of food emergency.

Due to a lack of foreign exchange, private banks are no longer able to finance product imports.

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Common consumer goods are becoming scarce in

Sri Lanka

.

Therefore, their prices are rising sharply.

A situation that prompts the government to take measures to prevent the hoarding of essential foods like rice and sugar.

Thus sanctions will be taken against those who store food.

More than 200 victims of Covid-19 per day

These shortages come at a time when

Covid-19 is hitting the country hard

.

The epidemic currently claims more than 200 victims per day and since the start of the pandemic, the country has officially counted 436,081 contaminations and 8,991 deaths.

Sri Lanka is also suffering from the decline in tourism, a traditionally very important sector for its economy.

The impact of Covid-19 on the fall in tourism caused

the economy to contract 3.6% last year.

Consequence: the country is deprived of foreign currency necessary for the imports of consumer goods.

Its foreign exchange reserves have fallen by almost 65% since November 2019. In order to devote the foreign currency to the purchase of drugs and vaccines, the government has banned the import of several non-essential products such as vehicles or turmeric, a spice widely used in local cuisine.

Consume fuel sparingly

Energy Minister Udaya Gammanpila called on motorists to consume fuel sparingly so the country can spend its foreign currency on the essential purchase of drugs and vaccines.

An employee of the president even warned that fuel rationing could be introduced by the end of the year if consumption was not reduced.

To read also: Overwhelmed by the Covid-19: Sri Lanka confines itself to ten days

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  • Sri Lanka

  • Economy

  • Coronavirus