Sri Lanka, which is printing rupees to pay for local salaries because it has run out of dollars to buy fuel, hopes to stop doing so in order to slow down Asia’s fastest inflation.
Prior to a monetary policy review that is planned on Thursday, Prime Minister Ranil Wickremesinghe informed parliament on Tuesday that the inflation rate is anticipated to hit 60 percent. The country is bankrupt, he continued, complicating negotiations for a bailout from the IMF.
As a result of severe crop and crude oil shortages, consumer prices increased by 54.6 percent in June from a year earlier. Transport expenses increased by 128 percent from the previous month and food prices increased by 80 percent. The Central Bank of Sri Lanka is on track to create more rupees this year despite the country’s economy contracting than it did in 2021, which is also driving up prices.(RS)