UK advises against Sri Lanka travel as soft-peg collapse triggers violence

ECONOMYNEXT – The United Kingdom has advised against non-essential travel to Sri Lanka as the worst currency crisis in the history of the island’s central bank triggered social unrest and violence killing at least nine and angry mobs torched property of ruling party officials.

“The Foreign, Commonwealth & Development Office (FCDO) advises against all but essential travel to Sri Lanka, due to ongoing political and economic instability,” UK citizens were told on May 13.

“This advice does not apply to airside transit through Sri Lanka’s international airport.”

“A State of Emergency has been declared and an island-wide curfew is in place.”

Violence broke out after loyalists of ex-Prime Minister Mahinda Rajapaksa attacked peaceful protestors at a seafront in Colombo on May 09 after the central bank triggered high inflation and currency debasement.

Sri Lanka’s rupee collapsed from around 182 to the US dollars to 380 levels after two year of money printing and surrender rule imposed as an attempt was made to float the rupee and end forex shortages, after running out of reserves.

Though interest rates have been hiked, monetary stability has not yet been restored due the botched float and forex shortages continue.

At least nine persons including two policemen died in a violent backlash that saw over 100 properties of the ruling Rajapaksa family and party members destroyed.

“Further incidents could take place,” the travel advisory said. “If you are in Sri Lanka at this time, or considering travel, you should avoid all protests and follow the advice of local authorities.”

President Gotabaya Rajapaksa imposed emergency rule, which is set to expire next week unless Parliament approves. The curfews are also being gradually relaxed. (Colombo/May19/2022)