Sri Lanka declares economic emergency

Sri Lanka has declared an economic emergency, after a steep fall in the value of the South Asian country’s currency caused a spike in food prices.

Authorities say they will take control of the supply of basic food items, including rice and sugar, and set prices in an attempt to control rising inflation, the BBC reported.

The Sri Lankan rupee has fallen by 7.5 per cent against the US dollar this year. The wide-ranging emergency measures came into effect on Tuesday.

A former army general has been appointed by the government as the commissioner of essential services, with the power to seize stocks held by traders and retailers.

The authorised officers will be able to take steps to provide essential food items at a concessionary rate to the public by purchasing stocks of essential food items, the president of the island nation, Gotabaya Rajapaksa, said in a statement.

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