Lankan govt admits to high prices

Colombo: Sri Lankan President Gotabaya Rajapaksa admitted his government is "not delivering" as shortages persist of food, medicines and other essential items because of a dire foreign exchange squeeze.

"The people may have a sense of displeasure towards me and the government for not delivering as they expected," Rajapaksa´s office quoted him as saying on Sunday. "I accept that. Not only me, but all ministers and Members of Parliament should accept it," he told troops in a speech marking the 72nd anniversary of the military´s founding.

A shortage of foreign currency has hindered the ability of the island nation of 21 million people to import goods, prompting the government to declare a state of emergency and impose rationing.

On Friday, the government removed price restrictions on essential foods in a desperate bid to end hoarding of staples such as rice, sugar, lentils and milk powder. Within hours of Rajapaksa´s remarks on Sunday, the government also announced an 85 percent hike in the price of liquified petroleum gas used in cooking stoves, starting Monday. The prices of wheat flour and cement were also increased by nearly 10 percent. Private economists and international rating agencies say Sri Lanka´s economic woes predate the pandemic.