Inflation nears record 40% in Sri Lanka amid commodity shortages 

Sri Lanka's consumer inflation rises to a new record in May nearing 40% while necessary items for the general public remain out of reach. 

Food inflation surged 57.4%, while prices of non-food items jumped 30.6%, the data showed.

Sri Lankan central bank had predicted price gains to touch 40% amid a shortage of essentials in the absence of dollars to pay for imports, reports Bloomberg.

Crisis-hit Sri Lanka hikes tax rates to maximise govt revenues

Consumer prices in the capital Colombo rose 39.1% from a year ago, the Sri Lanka Department of Census and Statistics said in a statement Tuesday (31 May).

A sharp fall in the Sri Lankan rupee and heightened global uncertainty also increased prices. 

After having lost more than 40% following a devaluation in March, the decline of rupee against dollar slowed since mid-May. 

Battling its worst economic crisis since independence, Sri Lanka needs $4 billion in emergency funds this year. However, a deal with the International Monetary Fund for rapid aid is still uncertain. 

Securing aid from the IMF would require it to ensure structural reforms such as raising taxes and pruning expenditure, steps that could further aggravate pain for its citizens.