Sri Lanka is facing its worst economic crisis in 70 years, with inflation hovering at 55 percent year-on-year and food inflation stubbornly high at 60 percent. To tackle the crisis, the island nation has implemented a 66 percent price increase in electricity, leaving many struggling to pay their bills.
Stall owner Mohammed Lafeel is one of those affected. He has seen his income drop by a third due to fewer customers buying his knick-knacks, and he has had to borrow money to pay for his daughter’s wedding and reconnect the power at home after it was cut off.
The power price increase is part of the government’s efforts to secure a $2.9bn loan from the International Monetary Fund (IMF). President Ranil Wickremesinghe took office last July, promising to pull the country out of crisis, and talks with the IMF are in the final stage.
The government has acknowledged the pain of the higher electricity bills but said it had no other way out of the crisis. Sanjula Peiris, managing director of family-owned Wish Bakers, said their costs have tripled in the past year due to the latest electricity bill increase. About 200 of Sri Lanka’s 5,000 bakeries have shut down, and many of those still running have laid off staff.
Carpenter Mohamed Sathurudeen said that the power tariff increase is unfair, especially when people are already suffering great economic difficulty. “If the government can’t find a solution to this, then it has failed. Please give this to someone who can manage it properly,” he said.
The economic crisis in Sri Lanka has left many struggling to pay their bills and keep their businesses afloat. The 66 percent price increase in electricity is part of the government’s efforts to secure a $2.9bn loan from the IMF to tackle the crisis, but it has come at a great cost to many citizens. Businesses have seen their costs triple in the past year, with some having to lay off staff or even close down altogether.
The government has acknowledged the pain of the higher electricity bills but said it had no other way out of the crisis. People like Mohammed Lafeel and Mohamed Sathurudeen are desperate for a break from the economic hardship, and are hoping that the government can find a solution that will help them manage their finances without further burdening them.