Prof. Steve Hanke warns of a total standstill in SL
Professor of Applied Economics at Johns Hopkins University – Steve Hanke has said that he thinks that everything is coming to a standstill in Sri Lanka.
“The official inflation rate is 21.5% per year and the accurate inflation is the one I’m measuring that’s a 132%. So the real inflation rate is 6 times higher than the official inflation rate,” he had exclusively told News 1st earlier today (18).
‘When you have inflation that high it is a complete catastrophe. And not only you have an economic catastrophe associated with the high inflation but you have a real problem because the inflation hits the poor people more than it hits the rich people,” he added.
Noting such a situation ultimately creates a political problem, Professor Steve Hanke warned “Sri Lanka it looks to me like everything is going to come to a stop.”