Sri Lanka inflation hits record 14pc

Sun Jan 23, 2022 12:00 AM Last update on: Sun Jan 23, 2022 01:14 AM

Sri Lanka consumer prices shot up a record 14 per cent in December, surpassing a previous high of 11.1 from a month earlier, official figures showed on Saturday as food and fuel shortages worsen.

Senior ministers warned parliament earlier in the week of a growing food crisis with rice harvests due in March expected to be drastically lower after an agrochemical import ban last year saw farmers abandoning more than 30 per cent of agricultural land.

The island’s tourism-dependent economy has been hammered by the pandemic with the government imposing broad import restrictions to avert a foreign exchange crisis, triggering a shortage of essential goods.

The Census and Statistics Department said year-on-year inflation in December was the highest since the National Consumer Price Index (NCPI) was established in 2015.

It said food inflation also hit a record 21.5 per cent, up from 16.9 per cent in November and 7.5 per cent a year ago. The use of substandard organic fertiliser and pesticides has sharply reduced vegetable and fruit crop yields.

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