Newsprint Runs Out in Sri Lanka Amid Economic Crisis
The owner of two major newspapers in Sri Lanka announced that they were suspending their print editions due to a shortage of paper, the latest casualty of the island nation's economic recession.
The 22 million-member nation of South Asia is experiencing its worst economic meltdown since it gained independence from Britain in 1948. Its foreign reserves have fallen to unprecedented levels. As a result of the prevailing shortage of newsprint, Upali Newspapers announced Friday that their English-language daily, The Island, and its sister publication, Divaina, would no longer be available in print.
Several other national dailies have also reduced their page counts due to an increase in costs and difficulties securing supplies from abroad in the past five months. Almost three million of Sri Lanka's 4.5 million students were unable to take their school tests last week because the authorities could not procure enough paper and ink.
As a result, there have been energy shortages across every sector and astronomical price hikes. It's the fifth consecutive monthly high for inflation in February, hitting 17.5 percent. More people are queuing at gas pumps, and at least four people have died while waiting.
Energy ministry officials said they managed to raise $42m by Friday to pay for a cargo of diesel and aviation fuel, held up at the Colombo port for nearly two weeks because there were no dollars to pay for it. Earlier this month, the government allowed the rupee to depreciate and announced it would seek IMF assistance to restructure its foreign debt.
While Sri Lanka's foreign reserves are $2.3 billion, they were $7.5 billion when the current government took office in November. The country will need nearly $7 billion to service its external debt this year. To overcome its currency crisis, the island is also seeking financial aid from India, China, and other countries.
The pandemic hit Sri Lanka at a time when it was in a deep economic crisis, reducing worker remittances and crippling the lucrative tourism sector, a key source of income.
