Sri Lanka's condition is deteriorating by the day, as it is trapped in China's debt trap. In light of the current situation, a packet of bread must also be purchased for $ 0.75 (150) rupees. Not only that, but vegetable prices are also at an all-time high.

Sri Lanka's condition is deteriorating by the day, as it is trapped in China's debt trap. The country's food crisis has worsened to the point where citizens are struggling to feed themselves.

The country's foreign exchange reserves are nearly depleted, and the people is suffering from the effects of inflation. In the current situation, a packet of bread must also be purchased for $ 0.75 (150) rupees.

Reserves of foreign currency are in poor condition

Sri Lanka's foreign exchange reserves fell by more than 70% to $2.36 billion in January, according to a study, and are continuing to fall.

The ban on food imports has pushed up inflation by fourfold day after day, with the common populace bearing the brunt of the pain. 

According to the most recent statistics, over 1,000 bakeries have closed owing to a lack of cooking gas and electricity in the country, and the surviving ones are not producing effectively.

Aside from that, buying milk has become a pipe dream for the locals. According to the newspaper, an industry association stated earlier this week that due to a lack of foreign exchange reserves in the country, gas is unavailable, causing major challenges for bakers and putting a strain on people's wallets.

Potatoes 200, then chilies 700 rupees per kg

Significantly, the Sri Lankan government declared a national financial emergency on august 30 last year, following a severe drop in the value of the rupee and a subsequent substantial spike in food costs.

In this regard, numbers for inflation in the country were recently given in a report. Food inflation in sri lanka climbed by 15% in a month between november 2021 and december 2021, according to a report released in January.

After that, the situation can be gauged by the fact that the price of one kilogramme of chilli in the country has risen to Rs 710, a 287 percent increase in a single month. 

Not only that, but the price of brinjal climbed by 51%, followed by a 40% increase in the price of onion. For one kilogramme of potatoes, I had to pay up to Rs 200.

On the verge of bankruptcy

Due to historic levels of inflation, a spike in food costs, and the effects of the Corona pandemic, the country's coffers are drying up. 

According to a previous assessment, the country needs to repay an estimated $7.3 billion in domestic and foreign debt over the next 12 months, but it doesn't have enough money to do so.

5 lakh individuals in the country are impoverished

Since the onset of the corona outbreak, the World bank estimates that 500,000 individuals in the country have been imprisoned in poverty.

According to the report, even families who were previously considered prosperous are having difficulty collecting bread for june 2. The majority of households in the country are struggling to meet their basic necessities.

During the country's economic crisis, more than two lakh individuals have lost their jobs in the travel and tourist industry alone, and the situation is similar in other industries.