Central Bank has been printing money as tax take falls and prices soar
Under President Gotabaya Rajapaksa, Sri Lanka has been printing money at a high rate partly to offset a fall in the tax take following cuts he pledged to gain election. (Nikkei montage/Reuters/Getty Images)
COLOMBO -- Sri Lanka's COVID-stricken economy is being likened to a ticking time bomb that could go off at any moment as foreign reserves plummet, the cost of living rises and the central bank carries on printing money.
The Central Bank of Sri Lanka printed over 130 billion rupees ($640 million) in October alone, but that is just the iceberg's tip. From December 2019 to August 2021, Sri Lanka's money supply increased by 2.8 trillion rupees -- a massive 42%.