Devjyot Goshal

COLOMBO (Reuters – Sri Lanka’s Prime Minister has warned about a crisis in food supply as the nation struggles to overcome a serious economic crisis. The minister also pledged that the government would purchase enough fertilizer for the coming season, which will help boost productivity.

President Gotabaya Rajapaksa’s April 2011 decision to ban chemical fertilisers dramatically reduced yields. However, the government has reversed that ban and no significant imports have been made.

In a tweet (NYSE:), Prime Minister Ranil Wickremesinghe stated that while there is not enough time for fertiliser to be obtained for the Yala (May-August), season, measures are being taken in order to have adequate stocks for Maha (September to March) season.

“I strongly urge everybody to acknowledge the gravity of… situation.”

Sri Lanka’s economy is suffering from a serious shortage of fuel, foreign exchange and medicines.

A.P.D. stated that “there is no reason to discuss how difficult it is.” Sumanavathi (60-year-old) was selling fruits and vegetables at the Pettah Market in Colombo’s commercial capital. I can’t forecast how the market will develop in two months. At this pace, we may not be even here.

There was a queue near the shop that sold cooking gas cylinders. Their prices have rocketed.

Mohammad Shazly (part-time chauffeur) said that only 200 cylinders were shipped, though 500 people were waiting. He said that he stood in line on the third day so he could cook for his family of five.

He stated, “Without gasoline, without kerosene oils, we can do nothing.” What is the last option? We will die if we don’t have food. This will occur 100 percent.”

According to the governor of the central bank, foreign exchange has been obtained from a World Bank loan. He also stated that remittances have been made to fuel and cook gas shipment payments. But supplies still need to come through.

According to the governor, inflation may rise even higher to 40% over the coming months. However it is driven primarily by supply-side pressures. The bank and government had already taken measures that reined in demand-side inflation.

Inflation reached 29.8% in April, and food prices rose 46.6% year over year.

Police used tear gas and water to disperse hundreds of students protesting the government as anger grew. They are calling for the resignation of the president, as well as that of the prime minster.

The economic crisis in Sri Lanka has been caused by rising oil prices, the COVID-19 pandemic that battered the tourist-reliant economy and populist tax cuts made last week by President Rajapaksa’s brother Mahinda.

Wickremesinghe was appointed as prime minister and is now accused of being a stooge among the brothers.

Others include heavily subventioned domestic fuel prices and the ban on imports of chemical fertilizers, which have ravaged the agricultural sector.

G7 finance chiefs stated that Sri Lanka is supported by efforts to offer debt relief after it defaulted in its sovereign debt.

P. Nandalal Weerasinghe is the chief of the central bank and said that plans to restructure the debt were close to being finalized. He would soon submit a proposal for the Cabinet.

He stated, “We are currently in pre-emptive default.” “We cannot repay until we have a debt restructuring,” he stated.

The spokesperson of the International Monetary Fund stated that the Fund was closely monitoring the developments and that technical discussions on any potential loan program for Sri Lanka were expected to be concluded by a virtual mission to Sri Lanka on May 24, according to a representative.