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ECONOMYNEXT – Sri Lanka’s commercial banks quoted the rupee at 375 to the dollar for telegraphic transactions on Tuesday (10) while the equity and secondary markets were closed following violent protests in the country, participants said.

The central bank’s indicative spot was quoted at 364.76 against the US dollar on Tuesday, down from 358.5 against the US dollar on Friday.

However, at the time of filing central bank’s dollar TT rates for Tuesday were not available. On Monday the TT rate was 361.7/374.9 against the US almost close to the commercial bank rates.

The kerb market ended the week at around 397/400 to the US dollar on May 07.

Sri Lanka’s new Central Bank Governor Nandalal Weerasinghe jacked-up policy rates to 14.50 percent from 7.50 percent and also allowed Treasury bill yields to rise which would eventually slow private credit and investment and imports.

The falling rupee had also impoverished the population of the island which will reduce consumption and support the rupee as long as no new money is printed.

Sri Lanka’s rupee fell steeply after an attempted float in March due to low policy rates and a surrender rule. Electricity prices were also not raised, driving bank credit up with losses, unlike a float in 2012 after printing money.

The country’s debt markets were closed on Tuesday following violent clashes between pro and anti-government demonstrators after a faction of Prime Minister’s supporters met him at his official residency Temple Trees.

Market dealers said they were still clearing out the transaction that took place on Monday.

On Monday, bonds maturing in 2025, 2027, three-month bills and one-year bills remained active, market participants said.

A bond maturing on 01.06.2025 was quoted at flat at 21.50/22.00 percent on Monday.

A bond maturing on 01.5.27 was quoted at 21.75/22.15 percent on Monday, up from 21.50/22.00 percent on Friday.

The three-month bill was quoted at 22.00/22.75 percent, up from 21.00/22.00 percent on Friday.

The 12-month bill was quoted at 23.15/24 percent on Monday, up from 23.00/24.00 percent at the previous day’s close.

At this week’s bills auction, the debt office is offering to sell 92.5 billion rupees.

Last week, the Treasuries auction yields stabilized with strong demand from genuine buyers, dealers said.

Sri Lanka’s official foreign reserves drop 90 million US dollars to 1.8 billion dollars in April.

Sri Lanka is facing the worst currency crisis triggered by the island’s economists who maintain an intermediate regime central bank after it attempted to target an output gap. (Colombo/May10/2022)

ECONOMYNEXT – Sri Lanka’s commercial banks quoted the rupee at 375 to the dollar for telegraphic transactions on Monday (09) while only a handful of maturities were quoted in the secondary, participants said.

The central bank’s indicative spot was quoted at 364.76 against the US dollar on Monday, down from 358.5 against the US dollar on Friday.

The central bank was quoting the dollar TT rate on Monday at 361.7/374.9 against the US almost close to the commercial bank rates.

The kerb market ended the week at around 397/400 to the US dollar on May 07.

Sri Lanka’s new Central Bank Governor Nandalal Weerasinghe jacked-up policy rates to 14.50 percent from 7.50 percent and also allowed Treasury bill yields to rise which would eventually slow private credit and investment and imports.

The falling rupee had also impoverished the population of the island which will reduce consumption and support the rupee as long as not new money is printed.

Sri Lanka’s rupee fell steeply after an attempted float in March due to low policy rates and a surrender rule. Electricity prices were also not raised, driving bank credit up with losses, unlike a float in 2012 after printing money.

In debt markets, bonds maturing in 2025, 2027, three-month bills and one-year bills remained active, market participants said.

A bond maturing on 01.06.2025 was quoted at flat at 21.50/22.00 percent on Monday.

A bond maturing on 01.5.27 was quoted at 21.75/22.15 percent on Monday, up from 21.50/22.00 percent on Friday.

The three-month bill was quoted at 22.00/22.75 percent, up from 21.00/22.00 percent on Friday.

The 12-month bill was quoted at 23.15/24 percent on Monday, up from 23.00/24.00 percent at the previous day’s close.

At this week’s bills auction, the debt office is offering to sell 92.5 billion rupees.

Last week, the Treasuries auction yields stabilized with strong demand from genuine buyers, dealers said.

Sri Lanka’s official foreign reserves drop 90 million US dollars to 1.8 billion dollars in April.

Sri Lanka is facing the worst currency crisis triggered by the island’s economists who maintain an intermediate regime central bank after it attempted to target an output gap. (Colombo/May 09/2022)

ECONOMYNEXT – Sri Lanka’s central bank has advanced a total of 246.1 million dollars to commercial banks by March through swap contracts official data shows, with state banks in particular facing tight conditions.

Sri Lanka’s banks found it more difficult to renew counterparty credit lines as money printed to keep rates down and target an output gap, progressively depleted forex reserves and led to credit downgrades over 2020 and 2021.

By December about 204 million US dollars had been advanced mainly to state banks by the central bank, and more were given later.

Over March another 104.9 million dollars had been advanced by the central bank to banks, taking the total to 246.1 million US dollars.

“If you look at the banking system, all the banks are very stable in terms of capital adequacy,” Central Bank Governor Nandalal Weerasinghe told reporters on April 29.

“Obviously the issue right now is the foreign currency liquidity in the banking system.

“There is a lack of foreign currency liquidity in the banking sector at different levels. So state banks are facing a higher liquidity shortage, and private banks are also facing forex liquidity shortage to a certain extent.

State bank have given dollar loans to the Ceylon Petroleum Corporation during the current and previous currency crises. There were attempts to secure long term loans to back the CPC loans at one time.

Persistently low rupee yields and dollar liquidity shortages in balance sheets of banks led to sharply higher interbank dollar yields in Sri Lanka triggering discounts in the forward and swap markets at different times over the past year.

Governor Weerasinghe said the central bank also had low reserves and the country as a whole was facing dollar liquidity problems due to the overall balance of payments crisis and all the measures now being taken was to address the problem.

Rates have since been hiked and rupee yields have picked up.

Sri Lanka had also sought support from China to get dollar credits to the state banks.

“Minister Ali Sabry discussed the need for FOREX liquidity support for the state banks of Sri Lanka and requested if such can be provided by AIIB,” the Finance Ministry said.

Net open positions of several banks were negative at different times over the past two years, financial sources have said.

Bank have also bought domestic dollar debt with foreign borrowings also face problems when credit lines are not rolled over.

Over the past year many banks repaid market foreign borrowings and raised more dollars from depositors.(Colombo/May09/2022)

ECONOMYNEXT – Sri Lanka’s Prime Minister Mahinda Rajapaksa has taken a vow Sunday to help remain in office despite mounting pressure to step down over the worsening economic crisis, sources close to the premier said.

In his first public outing since the outbreak of anti-government protests last month, the Prime Minister travelled to the sacred city of Anuradhapura where hostile crowds booed and jeered him and asked him to step down.

“The PM took a vow before the sacred Sri Maha Bodi,” the source said. “He wants to stay in office and that is why he climbed the steps to the upper terrace to touch the sacred Bo tree.”

The top most is not open to the public and access is allowed only for visiting heads of state and Sri Lanka’s top politicians.

Apart from seeking divine help to remain in office, the prime minister is also taking action to muster support from his constituents by inviting large numbers to visit him at his Temple Trees residence on Monday, the source said.

Local government representatives loyal to the premier met with him on Saturday and pledged support and demanded that his younger brother, President Gotabaya Rajapaksa, resign in response to the main demand of the escalating protests.

“Will dollars start flowing into the country if you resign?,” an unidentified woman was seen asking the premier in a video shared on social media. “People are not asking you to go, they are asking for the president to go. He must. We want you to continue.”

Following an emergency cabinet meeting on Friday, the president had indirectly suggested that a resignation by his elder brother Mahinda could clear the way for a broad-based national government to steer the country out of the economic chaos.

Contrary to some reports that Gotabaya asked Mahinda to step down, sources close to both said there was no such direct demand.

However, sources at Temple Trees said the PM was digging his heels and preparing to rally support within the SLPP for him to hold onto power.

“The PM has pointed out that he was not in any way responsible for policy blunders that brought the country to this mess,” the source said.

“The fertiliser fiasco as well as the delay in seeking an IMF bailout were all decisions taken by the president. Why should the PM be the fall guy.”

In the meantime, the Prime minister’s wife Shiranthi has visited the Dedimunda devale at Mawanella recently in a bid to secure blessings to ward off evil spirits tormenting their family.

The devale is said to have powers to neutralise any curse and return evil to those who instigated the spell. She travelled to the devale with extra police protection.

Last week, the president’s personal shaman, Gnana Akka, had charmed bottled water that was secretly delivered to the Galle Face agitation site in the belief that those who drink it will give up their agitation and the protests will fizzle out. (COLOMBO, May 8, 2022)

ECONOMYNEXT – Sri Lanka President Gotabaya Rajapaksa’s decision to declare State of Emergency without any violence in the month long protest has drawn heavy criticism from the international community including the United States and the island nation’s colonial rulers Britain.

The government on Saturday said Rajapaksa’s decision was to “ensure political stability” and thereby assuring public safety and uninterrupted supply of essential services.

The move comes as Sri Lanka’s trade unions have decided to start a continuous protest from May 11 if Rajapaksa and his government fails to resign.

An island wide protest on Friday crippled the country’s economy and brought the nation standstill.

The Indian Ocean Island’s trade unions, backing thousands of youth-led protesters, had warned for continuous protests until the resignation of President Rajapaksa and the Sri Lanka Podujana Peramuna-led government for their failure to ensure essentials.

The protests erupted late in March after people were deprived of essentials like cooking gas, fuel, import foods, and medicines.

The month long protests have been largely peaceful though police shot dead a protester in central Sri Lankan town of Rambukkana.

Diplomats and the United Nation’s unrepresentative questioned the motive of the emergency rules at this juncture when there had been only peaceful protests without any violence.

The US ambassador raised concerns over the State of Emergency (SOE)

“The voices of peaceful citizens need to be heard,” Ambassador Julie Chung said in her official twitter platform.

“And the very real challenges Sri Lankans are facing require long term solutions to set the country back on a path toward prosperity and opportunity for all. The SOE won’t help do that.”

Concerned by another State of Emergency. The voices of peaceful citizens need to be heard. And the very real challenges Sri Lankans are facing require long term solutions to set the country back on a path toward prosperity and opportunity for all. The SOE won’t help do that.

— Ambassador Julie Chung (@USAmbSL) May 7, 2022

The European Union, which is in discussions with Rajapaksa government’s efforts in addressing past human rights abuses to renew an annually over 500 million US dollar worth trade concession GSP, raised concerns over SOE and urged Sri Lankan authorities to safeguard democratic rights of all citizens, including right to free assembly and dissent, which has to be peaceful.

“A month of peaceful demonstrations has shown how Sri Lankan citizens fully enjoy their right to freedom of expression in the oldest democracy in South Asia,” the EU delegation in Sri Lanka said in its official twitter feed.

“State of emergency will certainly not help solving the country’s difficulties and could have a counter productive effect!”

Concerned by the state of emergency, EU strongly urges Sri Lankan authorities to safeguard democratic rights of all citizens, including right to free assembly and dissent, which has to be peaceful. Challenging times for Sri Lankan people- EU continues to follow situation closely

— EU in Sri Lanka (@EU_in_Sri_Lanka) April 2, 2022

The UN Human Rights Council (UNHRC) has already started an evidence gathering process over Sri Lanka’s past human rights allegations. Sri Lanka government under the current prime minister Mahinda Rajapaksa, a brother of the president, has been accused of war crimes in the final stage of a 26-year internal civil war ended 13 years ago.

Hanaa Singer-Hamdy, the resident representative of the United Nations said “limitations to the exercise of fundamental rights and freedoms are only acceptable when exceptional, proportional and justified.”

“But Peaceful expression of dissent is not an emergency.Root causes for dissent must be tackled,” she said in her official twitter feed.

Limitations to the exercise of fundamental rights and freedoms are only acceptable when exceptional, proportional and justified. But Peaceful expression of dissent is not an emergency.Root causes for dissent must be tackled

— Hanaa Singer-Hamdy (@SingerHanaa) May 7, 2022

Envoys of Canada, the Britain, Switzerland, and Norway also raised concerns over Rajapaksa’s decision to declare SOE.

It’s hard to understand why it is necessary, then, to declare a state of emergency,” Canada High Commissioner David Mckinnon said.

Over the past weeks, the demonstrations across #SriLanka have overwhelmingly involved citizens enjoying their right to peaceful freedom of expression, and are a credit to the country’s democracy. It’s hard to understand why it is necessary, then, to declare a state of emergency.

— David McKinnon (@McKinnonDavid) May 6, 2022

President Rajapaksa’s government in the past has been critical over the suggestions by international community to improve human rights in the country.

However, a looming economic crisis compelled it to deal with international powers and listen to them. Rajapaksa’s government has said it had made significant amendments into an anti terrorism act.

Any violence or human rights abuses at this juncture could delay Sri Lanka’s opportunity of securing an International Monetary Fund deal to overcome its economic crisis as political stability is a key requirement for such deals, two government officials have told Economy Next.

Sarah Hulton, the British High Commissioner to Sri Lanka said a democratic and peaceful approach is essential to resolving the current challenges.

The United Kingdom moved a resolution at the UNHCR in March last year urging to address past human rights vuiolations.

“Rights to peaceful protest and freedom of expression must be respected alongside all fundamental rights. Emergency laws restricting those rights work against democratic dialogue & solutions,” Hulton said in her twitter platform.

A democratic and peaceful approach is essential to resolving the current challenges. Rights to peaceful protest and freedom of expression must be respected alongside all fundamental rights. Emergency laws restricting those rights work against democratic dialogue & solutions.

— Sarah Hulton OBE (@SarahHultonFCDO) May 7, 2022

Any violence or human rights abuses could have detrimental impacts on Sri Lanka’s chances in rapid recovery from the ongoing economic crisis.

Swiss Ambassador to Sri Lanka Dominik Furgker said the causes of the protests have to be seriously and credibly addressed now to avoid an escalation.

“It‘s hard to see how a state of emergency could help in any way,” he said.

For weeks the Sri Lankans have been peacefully demonstrating because they are desperate and suffering. To avoid an escalation the causes have to be seriously and credibly addressed now. It‘s hard to see how a state of emergency could help in any way.

— Dominik Furgler (@SwissAmbLKA) May 7, 2022

New Zealand High Commissioner Michael Appleton also raised concerns concerned  in a State of Emergency, “without a clear rationale provided”.

“Sri Lankans, whose recent protests have been overwhelmingly peaceful, deserve to have their voices heard. We encourage all to focus on solving ’s political & economic challenges,” he said.

New Zealand is concerned is again in a State of Emergency, without a clear rationale provided.

Sri Lankans, whose recent protests have been overwhelmingly peaceful, deserve to have their voices heard.

We encourage all to focus on solving ’s political & economic challenges.

— Michael Appleton (@michelappleton) May 7, 2022

(Colombo/May08/2022)

ECONOMYNEXT – Sri Lanka’s gross official reserves have dropped 90 million US dollars to 1,827 million US dollars in April 2022, official data showed, with an attempt to shift from a soft-pegged exchange rate to a float still not having succeeded.

Finance Minister Ali Sabry told parliament that useful reserves were down to 50 million US dollars.

Most of the remaining reserves are from an 11 billion Chinese Yuan swap (about 1.5 billion US dollars) obtained through a swap which has restricted use.

The central bank said there were 1,827 million dollars of currency reserves, down from 1,917 million dollars.

There was 115 million dollars in IMFs special drawing rights, 29 million US dollars in gold, unchanged.

Sri Lanka started to experience unusual monetary instability after the end of a 30 year war with discretionary policy involving flexible inflation targeting (printing money to push inflation up when the credit system recovers from the last currency crisis of the soft-peg).

There can be no currency crises without a peg.

It was coupled with output gap targeting (printing money to push growth after the credit system recovers from the last collapsed of the soft-peg).

To calculate the output gap and give clues to trigger happy interventionists to print money the International Monetary Fund gave technical assistance to calculate an output gap.

In 2018 the central bank printed money and created a currency crisis despite tax hikes and a fuel price formula and triggered a currency crisis showing that under flexible inflation targeting/output gap targeting no amount of fiscal fixes will bring results.

Foreign borrowings ratcheted up at both central government and also Ceylon Petroleum Corporation as output gap targeting created forex shortages, making it difficult to pay for oil or repay debt through the purchase of dollars.

In 2020 taxes were also cut saying there was ‘persistent output gap’ and the central bank also borrowed abroad as money printing led to forex reserve losses and the CPC and the Central government could not borrow. (Colombo/May08/2022)

ECONOMYNEXT – Sri Lanka president’s decision to declare the State of Emergency was to “ensure political stability” and thereby assuring public safety and uninterrupted supply of essential services, the government said on Saturday.

President Gotabaya Rajapaksa declared the emergency law for the second time in five weeks amid the public uproar against his mismanagement of economic policies and increasing demand for him to resign. He has defied the calls and said he did not create any economic crisis.

“Sri Lanka is currently facing the worst economic crisis and political instability ever after
Independence due to manifold reasons both short and long term,” the government’s Information Department said in a statement.

It said the recent protests by the people including trade unions have interrupted essential services including the distribution of fuel, crippled public transport including the railway service, and disrupted daily functions of hospitals thereby causing inconveniences to the patients.

The protests also have disturbed the operation of manufacturing industries including the Apparel sector, school students, the attendance of workers attached to both the state and private sector factories while disrupting the day to day life and thus deepening the economic crisis.

“Therefore, with the intention of ensuring public safety, continuing the supply of essential goods and services uninterruptedly, and ensuring smooth public transport; according to the powers vested in the President under the Public Security Ordinance, Emergency Regulations have been declared,” the Information Department said.

“The State of Emergency was imposed as a short term measure of easing the crisis, and it will be lifted immediately after normalcy returns to the island.”

Thousands of Sri Lankans have started street protests against the government’s failure demanding the continuous supply for essentials such as medicines, fuel, cooking gas, and milk powder as well as uninterrupted power supply.

The 84.5 billion US dollar economy has already suspended foreign debt repayments as it has run out of foreign currency reserves.

The protests also come as the island nation is facing its worst food crisis after the President’s overnight decision to ban chemical fertilizers had hit the harvest across the country.

President Rajapaksa last month said banning fertilizer and delayed decision to seek assistance from the International Monetary Fund (IMF) were “mistakes”, while finance minister Ali Sabry last week said a 2019 tax slash was a historic mistake.

Most youth-led protesters say President Rajapaksa was responsible for the current crisis which has now aggravated with over 80 percent depreciation in the rupee currency in two months as he was either indecisive or delaying crucial decisions.

The Information Department in its statement said the most urgent challenge before the country is to manage the economic and debt crises within the shortest period of time.

“Discussions have already been opened with the multi- lateral institutions led by the IMF and friendly countries to obtain financial assistance, and restructure outstanding debt, and the outcome of such discussions are positive.” it said. (Colombo/May08/2022)

ECONOMYNEXT – Sri Lanka’s main stock index slipped for the third straight session, falling near 2 percent, as an islandwide hartal crippled the country’s economic activities and businesses, dealers said.

The main All Share Price Index (ASPI) fell 1.85 percent or 140.07 points to 7,427.48 at the close.

The most liquid index S&P SL20 plunged 3.16 percent or 78.30 points to close at 2,401.21.

An islandwide hartal demanding the resignation of President Gotabaya Rajapaksa and the incumbent government closed businesses, hit public transport, and compelled the closure of many financial institutions.

“The uncertainties on the political side are creeping on in the investor sentiment in a big way since there seems to be no solution coming from the parliament. This is an indication that an economic recovery is nowhere in the sight,”a market analyst told Economy Next.

On Friday, Sri Lanka’s parliament announced that the parliament will be closed till May 17, signalling the ruling party’s delay in facing a no-confidence motion against it submitted by the main opposition.

This move the analyst said will further dampen investor confidence and will continue the downward trend.

“There is a loss of confidence in the market. This decision is very bad on the market,” he said.

Market analysts previously said that investors were disappointed with the way the island’s politics was moving despite the people’s call for transparency and stability.

On Thursday, after the market closed the parliament saw the election of a deputy speaker with 148 votes with the backing of the government’s ruling party in the 225-member legislature. The move showed the government still holds the parliament majority though it is likely to change depending on the subject of vote, analysts say.

The day’s turnover was 973 million rupees, less than a quarter of this year’s average daily turnover of 4.3 billion rupees.

In the past few weeks, Sri Lanka’s stock market bottomed out close to 50 percent which analysts said would attract a lot of bargain hunters and boost buying in the market.

Sri Lanka’s usable foreign currency reserves have dropped to less than 50 million US dollars or equivalent to a day’s import requirement, signalling the country’s inability in importing goods in the future.

The 84.5 billion economy has already suspended foreign debt payments as it had run out of dollars.

The youth-led protests demanding the resignation of President Gotabaya Rajapaksa and his government continued for the 28th day near the presidential secretariat and the agitation has deprived Rajapaksa of appearing in the public. Already the protests have led to the resignation of the cabinet and a central bank governor.

But the apolitical protesters have demanded nothing short of Rajapaksa’s resignation, raising the political risks in the island nation which saw strong political stability under the incumbent president until early April this year.

Investors are also concerned over the steep fall in the rupee, which has fallen over 80 percent since it was allowed flexibility on March 7.

The market has lost x.xx percent in Nay following a loss of 14.5 percent in March and 23 percent in April. Overall the market has lost 39.2 percent so far this year after being one of the world’s best stock markets with an 80 percent return last year.

Foreign investors bucked the trend and bought a net 135million rupees’ worth of shares. However, the market has witnessed a total foreign outflow of 994 million rupees so far this year.

LOLC, Expolanka, and John Keells pushed the index down on Friday.

Shares in LOLC Holdings fell 9.2 percent to close at 415.50 rupees a share, Expolanka Holdings fell 6.6 percent to close at 148.50 rupees a share, John Keells ended 3.9 percent down at 124.00 rupees a share. (Colombo/May6/2022)

ECONOMYNEXT – Sri Lanka’s commercial banks quoted the rupee at 375 on the week ending May 06 while the secondary bond market witnessed sporadic activity, participants said.

The kerb market ended the week around 397/400 to the US dollar on May 07.

The central bank’s indicative spot was quoted at 358.5 against the US dollar on Friday while the TT rate was 361.7/374.9 against the US almost close to the commercial bank rates.t

Sri Lanka’s new Central Bank Governor Nandalal Weerasinghe jacked-up policy rates to 14.50 percent from 7.50 percent and also allowed Treasury bill yields to rise which would eventually slow private credit and investment and imports.

The falling rupee had also impoverished the population of the island which will reduce consumption and support the rupee as long as not new money is printed.

Sri Lanka’s rupee fell steeply after an attempted float in March due to low policy rates and a surrender rule. Electricity prices were also not raised, driving bank credit up with losses, unlike a float in 2012 after printing money.

In debt markets, a bond maturing on 01.5.27 was quoted at 21.50/22.00 percent on Friday, easing from 21.75/21.90 per cent on Thursday.

Market participants said they saw some activity in 2025, 2022, three months and 12-month maturities.

A bond maturing on 01.06.2025 was quoted at 21.50/22.00 percent on Friday.

The three-month bill was quoted at 21.00/22.00 percent, easing from 22.00/22.50 percent on Thursday.

The 12-month bill was quoted at 23.00/24.00 percent, flat from the previous day’s close.

At Wednesday’s Treasuries auction yields stabilized with strong demand from genuine buyers, dealer said.

Sri Lanka is facing the worst currency crisis triggered by the island’s economists who maintain an intermediate regime central bank after it attempted to target an output gap. (Colombo/May 06/2022)

AFP- Crisis-struck Sri Lanka’s vital tea exports have dropped to their lowest level in 23 years, official figures showed Wednesday, hit by a fertiliser ban and the war in Ukraine

Tea is the island nation’s biggest export commodity, bringing in about $1.3 billion annually before the current economic downturn, the worst since independence in 1948.

But a bungled ban on fertiliser imports last year — introduced in a doomed effort to save foreign currency and avoid a debt default — hit growers hard, with production falling 18 per cent on-year for the period from November 2021 to February 2022.

Customs data showed that first-quarter exports in 2022 correspondingly plunged to 63.7 million kilos (140 million pounds), down from 69.8 million kilos in the January-March period last year.

The tally was the lowest since the first quarter of 1999 when the country shipped out 60.3 million kilos of tea.

Export earnings for the first quarter also declined, to $287 million from $338 million.

Tea brokering firm Asia Siyaka blamed the drop on the agrochemical ban, which was portrayed by the government as a push to turn Sri Lankan farming 100-percent organic.

The ban was lifted by October following backlash from the industry, but farmers were left unable to access imported fertiliser as the country simultaneously ran out of dollars.

Industry officials added that about 10 percent of Sri Lanka’s tea exports had also been affected by Russia’s invasion of Ukraine. Both countries are top buyers of the island’s aromatic black tea.

The country of 22 million lacks enough foreign currency to finance even the most essential imports such as food, fuel and medicines.

Dire shortages and galloping inflation have led to widespread protests calling for President Gotabaya Rajapaksa to step down.