Sri Lanka needs to mothball the Central Bank and install a Currency Board now, Economist Steve Hanke noted.
As inflation soars at 117%/yr the gas crisis in Sri Lanka is dire. A 50-yr-old mother waited in line for 3 days for kerosene. At least 11 people have died while waiting for gas. Sri Lanka needs to mothball the central bank and install a currency board NOW.https://t.co/pR0tgm88JC
— Steve Hanke (@steve_hanke) July 3, 2022
Sri Lanka is in a death spiral. Today, I measure LKA’s inflation at 122%/yr. Things are so bad even IMF refuses to offer Sri Lanka a bailout loan. SPOILER ALERT: Sri Lanka has had 16 IMF programs. None have worked.https://t.co/OT20JfwvzY
— Steve Hanke (@steve_hanke) July 3, 2022
The present-day Sri Lanka is in a death spiral as the inflation is at 117 – 122 percent, “Things are so bad even IMF refuses to offer Sri Lanka a bailout loan,” the Johns Hopkins University Professor Twittered.
“Sri Lanka has had 16 IMF programmes. None have worked,” Hanke added.
The International Monetary Fund (IMF) ended discussions with Sri Lanka, failing to conclude a deal for a bailout package for the near-bankrupt nation after 10-days.
