Sri Lanka announces $1b relief as anger grows over food costs | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Wednesday
June 11, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
WEDNESDAY, JUNE 11, 2025
Sri Lanka announces $1b relief as anger grows over food costs

World+Biz

TBS Report
04 January, 2022, 07:20 pm
Last modified: 04 January, 2022, 07:25 pm

Related News

  • Sri Lanka train kills elephant despite new safety moves
  • Walton expands footprint in Sri Lanka
  • 21 killed as bus carrying pilgrims crashes in Sri Lanka
  • 6 killed in Sri Lanka helicopter crash: military
  • Bangladesh to adopt Sri Lankan model for dengue elimination

Sri Lanka announces $1b relief as anger grows over food costs

TBS Report
04 January, 2022, 07:20 pm
Last modified: 04 January, 2022, 07:25 pm
People queue outside a state-run supermarket to buy essential food items in Colombo, Sept. 3 Photographer: Ishara S. Kodikara/AFP
People queue outside a state-run supermarket to buy essential food items in Colombo, Sept. 3 Photographer: Ishara S. Kodikara/AFP

Sri Lanka announced a $1 billion relief package in an attempt to temper growing public anger over the soaring prices of essential food and medical items. 

The move came at a time when the country is going through a shortage of foreign exchange to pay for imports, reports Bloomberg.

The government of President Gotabaya Rajapaksa will increase civil servants salaries and pensions, scrap some taxes on food and medicine and provide cash for its poorest citizens. Critics, however, say it won't help Sri Lanka's state of finances and growing inflation. 

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

The package accounts for 1.2% of gross domestic product, and will be re-allocated from the 3.9 trillion rupees budgeted to be spent in the whole of 2022, Rajapaksa's brother and Finance Minister Basil Rajapaksa told a briefing in Colombo late Monday. There are no plans for new taxes, he added. 

The relief covers about 2 million people who are on income support and is a clear signal the government is seeking to prevent a backlash over the the rising prices of wheat, sugar and milk power. Sri Lanka is struggling to purchase these key staples from abroad due to worsening foreign exchange shortages. 

The escalating food prices also stem from domestic crop losses that have emerged after a government directive to stop chemical fertilizer use. The administration has included a plan to buy crops at higher-than-market rates from farmers who have been protesting for much of last year. 

Sri Lanka's main opposition slammed the relief package, saying it doesn't address the issue of external liquidity and domestic inflation, which accelerated to 12.1% in December, the second-fastest pace in Asia after Pakistan. 

"They are not addressing either of the problems. If they accommodate these wage increases by printing money inflation may go up further," said Harsha de Silva, a lawmaker from the Samagi Jana Balawegara and former minister of economic reforms. 

Sri Lanka's financial problems emerged with the start of the pandemic that has largely shuttered the tourism sector, a key source of foreign exchange earnings. In recent weeks, this has stoked debate among policymakers about whether it should seek a bailout from the International Monetary Fund or rely on bilateral emergency support from nations including China and India.

The country has $500 million of dollar bonds maturing Jan. 18 and another $1 billion in July. It has $3.1 billion of foreign exchange reserves, roughly enough to pay for two months of imports, based on extrapolations from previous government calculations. 

Basil Rajapaksa said at Monday briefing that the government hasn't made a decision on going to the IMF for support. In the past few weeks, Sri Lanka has held discussions with India for $1.9 billion in economic aid and used a $1.5 billion currency swap facility from China to build up its reserves.

Sri Lanka's sovereign dollar bonds were mostly steady to higher on Tuesday. Notes due March 2020 were trading at 51.1 cents on the dollar, while those maturing in July 2022 were at 70.5 cents.

Top News

Sri Lanka / Relief / Food price

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Maintaining a cordial relationship between patients and doctors at this tense time of an ongoing pandemic is more important than ever before. Photo: Mumit M
    Covid-19 testing to resume at hospitals amid rising infections
  • Members of law enforcement work to clear the area, as protests against federal immigration sweeps continue, in downtown Los Angeles, California, US June 10, 2025. Photo: REUTERS
    US cities brace for more protests as parts of Los Angeles placed under curfew
  • Chief Adviser Professor Dr Muhammad Yunus (L) and British Prime Minister Sir Keir Starmer (R). Photo: BSS
    UK PM visiting Canada, will meet CA if schedule matches: CA press secy

MOST VIEWED

  • Illustration: Duniya Jahan/ TBS
    Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon
  • A file photo of Bangladesh Bank Governor Dr Ahsan H Mansur. Photo: Collected
    'I have no relation with this': Ahsan Mansur debunks Joy’s allegations over daughter’s Dubai flat
  • Faiz Ahmad Tayeb. Photo: BSS
    Import duty on raw materials for e-bikes, lithium batteries reduced from 80% to 1% in some cases: Faiz Taiyeb
  • Screengrab from video shows a group of local youths forcing tourists to leave a tourist spot in Utmachhra area of Sylhet's Companiganj on Sunday, 8 June 2025, citing allegations of obscene activities and environmental damage
    Locals declare tourist spot in Sylhet 'closed', force visitors to leave
  • Shakil Ahmed. Photo: Collected
    DU student allegedly hangs himself following threats over old derogatory comment about Prophet on Facebook
  • Photo shows the Land Cruiser Prado car belonging to former member of parliament (MP) Anwarul Azim Anar found in Kushtia. Photo: TBS
    Luxury car of ex-AL MP Anar, who was killed in Kolkata, found in Kushtia

Related News

  • Sri Lanka train kills elephant despite new safety moves
  • Walton expands footprint in Sri Lanka
  • 21 killed as bus carrying pilgrims crashes in Sri Lanka
  • 6 killed in Sri Lanka helicopter crash: military
  • Bangladesh to adopt Sri Lankan model for dengue elimination

Features

Illustration: Duniya Jahan/ TBS

Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon

17h | Features
File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar

Dhaka: The city we never want to return to, but always do

2d | Features
Photo collage shows political posters in Bagerhat. Photos: Jannatul Naym Pieal

From Sheikh Dynasty to sibling rivalry: Bagerhat signals a turning tide in local politics

3d | Bangladesh
Illustration: TBS

Unbearable weight of the white coat: The mental health crisis in our medical colleges

6d | Panorama

More Videos from TBS

Curfew ordered in downtown Los Angeles after looting and vandalism

Curfew ordered in downtown Los Angeles after looting and vandalism

7m | TBS World
Israel kidnapped me in international waters: Greta Thunberg

Israel kidnapped me in international waters: Greta Thunberg

1h | TBS World
Is the chief adviser's meeting with the British Prime Minister uncertain?

Is the chief adviser's meeting with the British Prime Minister uncertain?

2h | TBS Stories
Aviation giants Airbus, Menzies seek long-time partnership with Bangladesh

Aviation giants Airbus, Menzies seek long-time partnership with Bangladesh

2h | TBS Stories
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net