Sri Lanka Economic Crisis: In recent times, two countries of Asia are going through economic crisis. The first of these is Sri Lanka and then Pakistan. Actually, the economy of both the neighboring countries of India has completely collapsed. Although the economic crisis in Sri Lanka is at its peak since last year. Their foreign exchange reserves are on the verge of being completely exhausted. Since then there has also been an increase in inflation. Sri Lanka’s inflation had reached a record high of 73.7 per cent in September last year.
At this time, Sri Lanka is expected to get a bailout package of $ 2.9 million from the International Monetary Fund (IMF), in view of this Sri Lanka has increased the prices of electricity by 66 percent on Thursday (February 16). The increase in electricity has been announced by the country’s Electricity and Energy Minister Kanchana Wijesekera.
Last year there was an increase of 75 percent
The Sri Lankan government had increased electricity prices by 75 percent last year as well. At the same time, in January last month, inflation in Sri Lanka has reached above 54 percent. After this, the increase in the prices of electricity has further increased the difficulties of the people of the country.
If we talk about income tax in Sri Lanka, the government has already increased it by 36 percent. Electricity and Energy Minister Kanchana Wijesekera told reporters that we know it will be difficult for the public, especially the poor. Sri Lanka is caught in an economic crisis and we have no option but to move towards cost-reflective pricing.
Close to meeting MF conditions
Sri Lanka’s Electricity and Energy Minister said that we hope that with the increasing price move, Sri Lanka has come close to meeting the conditions of the IMF. On the other hand, regarding the increase in prices, an official of Ceylon Electricity Board confirmed the scale of price hike.
The IMF agreed in September to provide Sri Lanka with a $2.9 billion loan to bail it out of its worst economic crisis in seven decades, but the deal came with conditions, including raising tax rates, removing subsidies and reducing public sector debt. Debt reduction was included. President Ranil Wickremesinghe’s government, which faced massive protests against economic mismanagement.
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