Currency depreciation lands Lanka in soup

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The country’s biggest wheat importer PRIMA increased the price of a kg of wheat flour by 35 LKR….reports Asian Lite News

The prices of a number of essential items in Sri Lanka increased on Friday after the country’s central bank allowed the country’s rupee (LKR) to devalue to 230 per US dollar.

On Friday, the All Ceylon Bakery Owners Association increased the price of a loaf of bread by 30 LKR, and the new price of a loaf of bread is between 110 to 130 LKR, reports Xinhua news agency.

The country’s biggest wheat importer PRIMA increased the price of a kg of wheat flour by 35 LKR.

Meanwhile, Lanka Indian Oil Corporation, the country’s second-largest retail fuel distributor, increased the selling price of diesel by 75 LKR per liter and petrol 50 LKR per liter on Thursday midnight.

Three-wheeler and bus owners’ associations claimed that there will be drastic increases in fares with the hike in fuel prices by Lanka India Oil Corporation, demanding a fuel subsidy.

Anjana Priyanjith, chairman of the All Ceylon Private Bus Owners Association, warned that the minimum bus fare will be between 30 and 35 LKR, urging the government to provide a diesel subsidy for private bus owners.

The price of airline tickets was increased by 27 per cent, said Sri Lanka’s Civil Aviation Authority.

The Central Bank of Sri Lanka on Monday allowed the LKR to devalue considering the severity of the external shocks and recent developments in the domestic front.

The LKR on Thursday depreciated to 260 per US dollar from 200 per dollar before depreciation.

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