The economic condition of this neighboring country of India is serious, inflation 60%, the government stopped printing notes

Sri Lanka is facing the biggest economic crisis in history

Another neighbor of India is facing the biggest economic crisis in history. Sri Lankans have no money to buy crude and print money to pay salaries to local workers. However now it may decide to stop printing the local currency to curb rising inflation.

Prime Minister Ranil Wickremesinghe said in Parliament on Tuesday that inflation is expected to reach 60 per cent. There is a monetary policy review meeting in Sri Lanka on Thursday. Wickremesinghe said the ongoing negotiations with the International Monetary Fund (IMF) regarding the bailout have become very complicated. The government expects the agreement between Sri Lanka and the IMF to be completed by August, which was earlier than the June deadline.

Let us tell you that the consumer price index in the island nation of Sri Lanka rose by 54.6 percent in June compared to a year ago. At the same time, transport has become 128 percent more expensive than last month. Along with this, the country is facing acute shortage of petroleum products and agricultural crops. To counter inflation, Sri Lanka’s central bank is printing more money to prevent the economy from sinking, which also increases costs. Inflation in Sri Lanka is expected to reach around 60%, the highest in Asia

A day earlier, Sri Lanka’s Energy Minister Kangchenjunga Wijasekara said raising funds at this stage was “challenging”. The government does not have enough foreign funds. Unfortunately the government has placed an order for new fuel stocks and diesel is expected to reach 40,000 metric tonnes in the country on Friday, while petrol will arrive by another aircraft on July 22.

Some countries are willing to provide fuel but the payment terms are strict. He said that many consignments of fuel are coming to the country soon but the government is struggling to raise Rs 58.7 crore to pay for these consignments. Wijesekara said Sri Lanka owed about $800 million to seven fuel suppliers.

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