Sri Lanka's economic crisis worsens; schools, offices shut
Sri Lanka’s economic crisis is worsening by the day as the country once again hiked fuel prices, thus resulting in further trouble for the citizens who are battling abnormal inflation for the last several months.
Army personnel were seen distributing tokens to vehicle owners who had lined up outside fuel stations. Schools are already shut in several parts of the country and employees have been told to work from home.
Sri Lanka is facing its worst economic crisis in decades with its foreign exchange reserves stooping to a record low. The situation is so dire that the government doesn’t have funds to pay for import of food, medicine and most importantly fuel. The UN has already issued an emergency appeal to raise $47m to feed the most vulnerable segments of the island’s 22 million people.
About 1.7 million Sri Lankans need “life-saving assistance”, according to the UN, with four out of five people reducing their food intake due to severe shortages and galloping prices.
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On Sunday (June 26), Ceylon Petroleum Corporation (CPC) raised the price of diesel to Rs 460 (up by 15 percent) a litre while petrol now costs Rs 550 rupees (up by 22 percent) a litre.
Sri Lanka’s Energy Minister Kanchana Wijesekera said oil shipments are not arriving in time. As per media reports, the island nation has just enough fuel to last for two days.
Meanwhile, a US team from the Department of Treasury and State is in Sri Lanka to look at best possible options to help Sri Lankans.