Sri Lanka inflation rate: Sri Lanka’s inflation surges over 60 per cent in July

Inflation in Sri Lanka rose to 60.8 percent in July, from 54.6 percent in June, the crisis-hit country’s statistics department said on Saturday, as food and fuel remained scarce amid depleted foreign exchange reserves. Annual inflation based on the Colombo Consumer Price Index was 60.8 percent in July, the Department of Census and Statistics said in a statement.

In June it was 54.6 percent.

Annual food inflation in July rose 90.9 from 80.1 percent in June.

The country’s central bank has said inflation could peak at 75 percent.

Sri Lankans face a shortage of essential necessities amid the ongoing economic collapse, the worst since 1948.

Until the middle of this month there was an acute shortage of cooking gas with long lines for refills.

The situation has now eased with several shipments arriving.

However, the miles of fuel queues can still be seen.

The country has negotiated a rescue package with the International Monetary Fund (IMF). Discussions with the IMF have raised a problem over the need to restructure debt.

President Ranil Wickremesinghe’s office said in a statement Friday that negotiations with the IMF are progressing.

The statement said political negotiations are underway to form an all-party government to achieve political stability following the recent unrest in the country.

Sri Lanka has seen months of massive unrest over the worst economic crisis, with the government filing for bankruptcy in mid-April by refusing to pay its international debt.

The protests in the country prompted Gotabaya Rajapaksa to flee the country and resign as president.

The previous Rajapaksa government is accused of screwing up the economic crisis.

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