# We are going to die’: Food shortages add to Sri Lanka’s woes Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-05-20 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Sri Lanka Prime Minister warns of food shortage amid Meta Description: The Prime Minister promises to secure fertiliser for the next planting season amidst an economic downturn. Get the latest update on the crisis here. URL: https://financedigest.com/we-are-going-to-die-food-shortages-add-to-sri-lankas-woeshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-05-20t065817z1lynxnpei4j07frtroptp4sri-lanka-crisis-1736815704220-compressed.jpg) By Devjyot Ghoshal and Uditha Jayasinghe COLOMBO (Reuters) – Sri Lanka’s prime minister has warned of a food shortage as the island nation battles a devastating economic crisis and vowed the government will buy enough fertiliser for the next planting season to boost harvests. A decision in April last year by President Gotabaya Rajapaksa to ban all chemical fertilisers drastically cut crop yields and although the government has reversed the ban, no substantial imports have yet taken place. While there may not be time to obtain fertiliser for this Yala (May-August) season, steps are being taken to ensure adequate [stocks](https://www.financedigest.com/mutual-funds-vs-stocks-which-is-better.html "stocks") for the Maha (September-March) season,” Prime Minister Ranil Wickremesinghe said in a message on Twitter late on Thursday. “I sincerely urge everyone to accept the gravity of the … situation.” Rajapaksa appointed nine new members to the cabinet on Friday, including to the critical health, trade and tourism ministries. But he did not [name a finance](https://www.financedigest.com/ultimate-finance-names-josh-levy-new-ceo.html "Ultimate Finance names Josh Levy as new CEO") minister and the portfolio is likely to be retained by Wickremesinghe. Tourism-dependent Sri Lanka is [facing a dire shortage](https://www.financedigest.com/eu-could-face-gas-shortage-next-year-iea-warns.html "EU could face gas shortage next year, IEA warns") of foreign exchange, fuel and medicines, and economic activity has slowed to a crawl. “There is no point in talking about how hard life is,” said A.P.D. Sumanavathi, a 60-year-old woman selling fruit and [vegetables in the Pettah market](https://www.financedigest.com/dehydrated-vegetables-market-to-discern-steadfast-expansion-during-2018-2028.html "Dehydrated Vegetables Market to Discern Steadfast Expansion During 2018-2028") in Colombo, the commercial capital. “I can’t predict how things will be in two months, at this rate we might not even be here.” Nearby, a long [queue had formed](https://www.financedigest.com/queues-form-at-fever-clinics-as-china-wrestles-with-covid-surge.html "Queues form at fever clinics as China wrestles with COVID surge") in front of a shop selling cooking gas cylinders, the prices of which have soared to nearly 5,000 rupees ($14) from 2,675 rupees in April. Only about 200 cylinders were delivered, even though there were about 500 people,” said Mohammad Shazly, a part-time chauffeur in the queue for the [third day](https://www.financedigest.com/over-a-third-of-uk-people-think-thomas-whitmore-from-independence-day-will-be-joined-by-donald-trump-in-disneys-hall-of-presidents.html "Over a third of UK people think Thomas Whitmore from Independence Day will be joined by Donald Trump in Disney’s Hall of Presidents") in the hope of cooking for his family of five. “Without gas, without kerosene oil, we can’t do anything,” he said. “Last option what? Without food we are going to die. That will happen hundred percent.” The central bank governor said on Thursday foreign exchange had been secured from a [World](https://www.financedigest.com/post-crash-banking-regulation-is-transforming-the-world-of-corporate-lending-for-the-better.html "Post-crash banking regulation is transforming the world of corporate lending – for the better") Bank loan and remittances to pay for fuel and cooking gas shipments, but supplies are still to flow through. Inflation could rise to a staggering 40% in the next couple of months but it was being driven largely by supply-side pressures and measures by the bank and [government were already reining](https://www.financedigest.com/reining-in-the-wild-horse-governing-an-idea.html "Reining in the Wild Horse: Governing an idea") in demand-side inflation, the governor said. [Inflation hit 29.8% in April with food prices](https://www.financedigest.com/uk-shop-price-inflation-hits-record-8-in-january-brc.html "UK shop price inflation hits record 8% in January: BRC") up 46.6% year-on-year. G7 SUPPORT ON RELIEF As anger against the government spreads, police fired tear gas and water canon to push [back hundreds of student](https://www.financedigest.com/its-back-to-school-for-investors-as-uk-student-accommodation-less-vulnerable-to-brexit-shock-reports-jll.html "It’s back to school for investors as UK student accommodation “less vulnerable to Brexit shock” reports JLL") protesters in Colombo on Thursday. The protesters are demanding the ouster of the president as well as the [prime minister](https://www.financedigest.com/economist-odor-picked-as-slovakias-caretaker-prime-minister.html "Economist Odor picked as Slovakia’s caretaker prime minister"). The economic crisis has come from the confluence of the COVID-19 pandemic battering tourism, rising oil [prices and populist tax cuts](https://www.financedigest.com/tesla-cuts-u-s-model-s-and-model-x-prices-between-4-and-9.html "Tesla cuts U.S. Model S and Model X prices between 4% and 9%") by the government of President Rajapaksa and his brother, Mahinda, who resigned as prime minister last week. Critics accuse Wickremesinghe, [appointed prime minister](https://www.financedigest.com/britains-queen-elizabeth-will-appoint-new-prime-minister-at-balmoral.html "Britain’s Queen Elizabeth will appoint new prime minister at Balmoral") in his place, of a being a stooge of the brothers, an accusation he denies. Other factors have included heavily subsidised domestic [prices of fuel and the decision](https://www.financedigest.com/uks-ofcom-delays-bt-fibre-pricing-decision-after-ceo-remarks.html "UK’s Ofcom delays BT fibre pricing decision after CEO remarks") to ban chemical fertiliser imports. The Group of Seven economic powers supports efforts to [provide debt relief](https://www.financedigest.com/recovery-bus-provides-cool-relief-for-s-koreas-covid-19-testers.html "‘Recovery bus’ provides cool relief for S.Korea’s COVID-19 testers") for Sri Lanka, group finance chiefs said on Thursday in a draft communique from a meeting in Germany after Sri Lanka defaulted on its sovereign debt. [Central bank](https://www.financedigest.com/testing-waters-hungarys-central-bank-flags-cut-in-top-end-of-rate-corridor.html "Testing waters, Hungary’s central bank flags cut in top end of rate corridor") chief P. Nandalal Weerasinghe has said plans for [debt restructuring](https://www.financedigest.com/sovereign-debtors-creditors-agree-on-steps-to-jumpstart-debt-restructurings.html "Sovereign debtors, creditors agree on steps to jumpstart debt restructurings") were almost finalised and he would be submitting a proposal to the cabinet soon. “We are in pre-emptive default,” he said. “Our position is very clear, until there is a debt restructure, we cannot repay.” A spokesperson for the International Monetary [Fund said it was monitoring developments very closely](https://www.financedigest.com/galois-capital-flagship-fund-to-close-after-ftx-losses.html "Galois Capital flagship fund to close after FTX losses") and that a virtual mission to Sri Lanka was expected to conclude technical talks on a possible loan programme on May 24. ($1 = 355.0000 Sri Lankan rupees) (Additional reporting by Uditha Jayasinghe and Sudarshan Varadhan; Writing by Raju Gopalakrishnan; Editing by Robert Birsel) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---