Posted on 10/08/2021 6:51:07 AM PDT by Oldeconomybuyer
Colombo (AFP) - The Sri Lankan government on Friday ended price controls on essential foods in a bid to end black market trading as food shortages worsen amid a foreign currency crisis.
The cabinet decided to free prices for milk powder, wheat flour, sugar and liquified petroleum gas hoping it would increase supplies.
"Prices could go up by as much as 37 percent across the board, but it is hoped dealers will not make unconscionable profits," a trade ministry official told AFP.
A shortage of foreign currency caused by a pandemic recession has unleashed the shortages of food, medicines and other essential items for the island nation of 21 million people.
The government declared a state of emergency over the food shortages on August 31 and imposed rationing.
It forced farmers to sell their rice to a state agency and seized some from private warehouses. But the shortages worsened and last week authorities lifted controls on rice hoping to get supplies into markets.
Since then rice prices have risen by more than a third though people can buy as much as they want.
(Excerpt) Read more at france24.com ...
Been reading Milton Friedman?
Too little too late.
Try Capitalism for a while.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.