Sri Lanka Declares food Emergency, and Forex crisis Worsens.
On Tuesday Sri Lanka declared a state of emergency on top of food shortages and private banks ran out of foreign exchange. The emergency where have been declared by honorable Sri Lankan president.
The Sri Lanka facing food shortage and forex crisis, where Siri Lankan government is having no forex currency left in their hand, as they are now not able to import food from the international market. Know President Gotabaya Rajapaksa issued the emergency under the Public Security Ordinance, this will allow the the government officials to seize stocks, and those people who hoard essential foods.
Government officials will ensure that essential goods, including rice, sugar, wheat, etc. will be sold at government mandated prices only. President have also appointed a Major General to supervise food distribution so that the price of good will not increase rapidly. Shortage of essential goods like sugar, milk powder, food oil, and other home remedies have been reported from various parts of the country.
The Sri Lankan foreign exchange reserves drop due to failed bond auction, Sri Lanka's foreign reserves fall from 7.5 billion to 2.8 billion at the end of July 2021. To save remaining forex reserves, Government of Sri Lanka has banned Foreign-made goods last year. Siri Lankan foreign mainly depend on tourism, and because of Covid-19 Most effected sector was tourism sector.
The Administration has declared 16-day curfew due to increase in Covid-19 cases.