Amid economic crisis, Sri Lanka’s inflation rate jumps to 70.2%

Amid the worst-ever economic crisis since the country gained independence in 1948, Sri Lanka’s inflation rate jumped to 70.2 per cent in August, official data revealed on Thursday.

Due to the inflation, food prices spiked by 84.6 per cent compared to the corresponding period in 2021, reports the BBC.

In August, the Central Bank of Sri Lanka said that it had expected inflation to ease, as the country’s economy slowed, after peaking at about 70 per cent.

Official figures released earlier this month had revealed that the crisis-hit island nation’s economy had contracted by 8.4 per cent in the three months to the end of August.

The development comes as the country of some 22 million people is continuing to face an unprecedented economic crisis.

The crisis has led to shortage of basic essentials like food, medicine and fuel.

Earlier this month, Sri Lanka reached a preliminary deal with the International Monetary Fund for a $2.9 billion loan. However, the agreement hinges on the country also receiving funds from private creditors.

The Sri Lankan government officials are due to meet creditors on Friday, to discuss the extent of the country’s economic problems and a proposal to restructure its debts.

–IANS

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