Tea leaves for oil -- Sri Lanka struggles with runaway inflation

Island nation's price increases could act as bellwether for global prices

20211223 Sri Lanka tea

Sri Lanka plans to pay Iran in tea to settle an oil debt. © Reuters

FUMITO AKIYAMA, NQN staff writer

SINGAPORE -- Economic conditions in Sri Lanka are growing worse. The Sri Lankan rupee has fallen sharply as inflation picks up. Funds have been flowing out of the country, leading to a sharp decline in its international creditworthiness, as with Turkey. The world is becoming increasingly wary of signs of such prolonged inflation, and turbulence in financial markets is already beginning to appear.

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