Sri Lanka Inflation Reaches 70.02%!

 Sri Lanka's annual inflation rate for the month of August soared as high as 70.02% when the poor country was gripped by a financial crisis and political turmoil.

Against the background of the bankruptcy situation that forced the country in South Asia to ask for external financial assistance, the jump in food prices as high as 84.6% compared to a year before continued to be the main contributor to inflation.

This indirectly also means that Sri Lanka's economic growth has contracted by 8.4% in the 3 months since it was declared bankrupt.

In general, since the spread of Covid-19 which restricted tourism activities, Sri Lanka's source of income, there has been a surge in imported goods such as fuel which has sparked public protests.

Also flanked by the political turmoil involving President Gotabaya Rajapaksa fleeing and causing a government power vacuum, it is no wonder the inflation rate reached 70.02%.

In the meantime, the International Monetary Fund (IMF) continued to pay attention to Sri Lanka when they disbursed $2.9 billion in aid funds last month.

In addition, the Indian government is also said to be discussing a plan to help Sri Lanka restructure its long-term debt.

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