Sri Lanka import ban takes spice out of life

Published 2021년 2월 15일

Tridge summary

Sri Lanka's government has imposed an import ban to retain foreign currency and pay international debt, resulting in a turmeric shortage and price surge. The ban, extending into this year, has affected curry lovers and market sellers, leading to smuggling attempts from India. The ban has also impacted other imports, causing price hikes and economic disruption. Despite criticisms for the potential growth retardation and corruption caused by the ban, the central bank's economic research chief argues that the risk of trade retaliation is preferable to defaulting on debt repayments.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

An import ban in cash-strapped Sri Lanka is leaving a bad taste in the mouths of its curry lovers, depriving them of vital turmeric supplies and encouraging budding smugglers to take their chances with the spice. With no foreign cash coming in as COVID-19 cripples the tourism industry, the government in March last year imposed a ban on many imports to stop money leaving the country, so that it can pay US$4.5 billion this year to service its international debt. Vehicles, floor tiles and machinery parts are among the items prohibited, but it is a ban on turmeric that has the Indian Ocean island simmering with anger. The aromatic root is a vital ingredient in curries and other local cuisine, and also increasingly sought after as a health supplement. However, only one-fifth of the 7,500 tonnes Sri Lanka consumes every year is produced locally. Since the pandemic, demand has increased so much that prices have shot up 20-fold to an eye-watering 9,000 rupees (US$48) a kilogram — a week’s ...
Source: Taipeitimes

Would you like more in-depth insights?

Gain access to detailed market analysis tailored to your business needs.
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes. To learn more about our cookies, please read our Privacy Policy.