Official numbers released on Saturday indicated that consumer prices in Sri Lanka increased by a record 14 percent in December, surpassing a previous high of 11.1 from a month earlier, as food and fuel shortages worsened.
Following an agrochemical import ban last year, farmers abandoned more than 30% of agricultural land, senior ministers warned parliament earlier this week of a developing food crisis, with rice harvests due in March projected to be dramatically lower.
The pandemic has wreaked havoc on the island’s tourism-dependent economy, prompting the government to impose extensive import restrictions in order to avoid a foreign exchange crisis, resulting in a shortage of vital products.
Year-on-year inflation in December was the highest since the National Consumer Price Index (NCPI) was established in 2015, according to the Census and Statistics Department.
Food inflation also reached a new high of 21.5 percent, up from 16.9 percent in November and 7.5 percent a year ago, according to the report.
Vegetable and fruit crop yields have been drastically lowered due to the usage of poor organic fertilizers and pesticides.
The government relaxed its agrochemical import restriction in October after widespread farmer protests, but banks still lack the funds to finance imports.
For months, supermarkets have been rationing milk powder, sugar, lentils, and other necessities, with a top official warning last month that new limitations would be imposed to feed the most vulnerable.
