Distrust and distress

Experts are talking about last resorts and avoiding famine, even as the Central Bank of Sri Lanka says all is well

- LAKSHMI SUBRAMANIAN

Life in Sri Lanka’s capital city has not been easy in recent times. Kareema Datha, 25, a resident of Colombo, spends at least an hour a day in long queues outside supermarkets or grocery stores to buy essentials like milk powder, sugar, rice, vegetables and cooking oil. When she finally gets in, she is faced with empty aisles, in most of the shops.

Even when items are in stock, Kareema, a household help, can barely afford them. For example, the price of sugar jumped from LKR100 per kg in April to LKR230 per kg now (approximately ₹85). Similarly, the price of lentils went up by LKR40 per kg between April and August. “I was spending 750 rupees a week for my groceries and vegetables,” said Kareema over the phone. “It is now around 1,500 rupees, almost double.”

Hoarding was evidently identified as the issue and, on August 30, President Gotabaya Rajapaksa announced strict controls on the supply of essential goods. A statement issued by his office said that essential items would be purchased by the government and provided at fair prices. But, what seems to be the root cause of the inflation—the apparent scarcity—was not properly addressed. This is not surprising given that authorities seem to be asserting that there is no food shortage (see interview with Sri Lanka’s central bank governor).