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BIG STORY MAY 27, 2022 | The Indian Eye 5

Finance Minister Nirmala Sitharaman chairing the 7th Annual Meeting of the Board of Governors of People have been protesting against inflation across
New Development Bank on Saturday (ANI) the country (ANI)

Sitharaman said the Prime Min- dence in 1948. A crippling shortage tion of the powerful Rajapaksas. has decided to ban the import of 10
ister has specifically asked all arms of of foreign reserves has led to long On the other hand, Nepal is un- different luxurious goods.
the government to work with sensitivi- queues for fuel, cooking gas, and dergoing a serious financial crisis with In recent days, with inflation close
ty and give relief to the common man. other essentials while power cuts and foreign reserves falling down in wake to 13 per cent and food prices sky-
“Keeping in line with @PMOIndia @ soaring food prices heaped misery on of elongating Russia-Ukraine crisis. rocketing, Pakistan is said to be head-
narendramodi’s commitment to help the people. The economic crisis has The government is making attempt ing towards a Sri Lanka-like crisis.
the poor and common man, Today, also triggered a political crisis in Sri to reduce the consumption of fuels to It is a crisis all South Asian na-
we are announcing more steps to help Lanka and a demand for the resigna- preserve the foreign reserve and also tions, including India, want to avoid.
our people. Even during the pandem-
ic, our government set a paradigm
of welfare, especially with PM Gar- G7 countries determined to rein in rising inflation
ib Kalyan Anna Yojana. This is now
acknowledged and appreciated the he Group of Seven (G7) countries are de-
world over,” she said. termined to rein in the spiralling inflation,
Meanwhile, as the economic cri-
sis grapples with various South Asian TGerman Finance Minister Christian Lindner
said on Friday.
countries including Nepal, Sri Lanka, Speaking at a press conference after the G7
and Pakistan, the three countries in- finance ministers and central governors meeting
cluding the United States, India, and held in Germany, Lindner called on central banks
China have come forward to rescue to bring down the surging inflation. “Across most
the nations. G7 countries, inflation rates have reached levels
The recent financial crunch-
es in hardest-hit Sri Lanka which not seen for decades,” said a communique released
after the meeting.
has almost no petrol left, Nepal “G7 central banks are closely monitoring the
struggling with power outages, impact of price pressures on inflation expecta-
and Pakistan which is also grap- tions and will continue to appropriately calibrate
pling with the soaring inflation. the pace of monetary policy tightening in a da-
India on Saturday provided an-
other 40,000 metric tonnes of diesel to ta-dependent and clearly communicated manner,
ensuring that inflation expectations remain well
Sri Lanka under the credit line facili- anchored, while being mindful to safeguard the re-
ty to the island nation which is grap- covery and limit negative cross-country spillovers.”
pling with its worst economic crisis. Joachim Nagel, chief of the German central
Last month, India extend-
ed an additional USD 500 million bank, Bundesbank, also voiced his concern about
inflation while hosting the press conference with
credit line to help Sri Lanka im- Lindner.
port fuel as the country has been Earlier this month, Nagel, also European
struggling to pay for imports af- Central Bank (ECB) governing council member,
ter its foreign exchange reserves explicitly proposed that the ECB should end bond
plummeted sharply in recent times. purchases as the first step at the end of June and
“Pumping diesel into #SriLan-
ka!!! Another 40,000 MT consignment start raising interest rates in July.
The G7 ministers and governors reaffirmed
of diesel under the credit line from their financial support for Ukraine at the Peters-
#India reached #Colombo today. In- berg meeting. They also revealed that the G7
dia’s High Commission has tweeted. The Modi government is trying to tame the inflation by providing subsidies countries have mobilized 19.8 billion US dollars of
Sri Lanka is going through the as the Ukraine war creates food and fuel crisis in South Asia (ANI)
worst economic crisis since indepen- budget support to help Ukraine in 2022.

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