ECONOMYNEXT – Sri Lanka’s Yupun Abeykoon has bagged the Bronze at the men’s 100 metre event at Commonwealth Games 2022 as his country reels from the worst currency crisis in the history of the island’s 72-year old central bank.
Abeykoon won bronze clocking the 100 metres at 10.14 seconds, just behind South Africa’s Akani Simbine at 10.13 seconds and Kenya’s Ferdinand Omanyala who won gold with a timing of 10.02 seconds.
Earlier in the year he set a regional record at 9.96 seconds becoming the fastest man in South Asia.
Related
Sri Lanka’s Yupun Abeykoon sets new South Asia sprint record
Abeykoon won the bronze as the country’s inflation topped 60 percent in June and the currency collapsed to 360 to the US dollar amid an attempted float of the unstable soft-pegged currency which was botched by a surrender rule.
Food prices have almost doubled over the past year.
Sri Lanka got into a monetary meltdown as the central bank printed money over two years to suppress rates and eventually defaulted amid severe forex shortages.
The country’s economists got the ability to create forex shortages and currency crises in August 1950 with the setting up of a soft-pegged central bank with a policy rate.
However policy has worsened dramatically from 2015 under highly discretionary ‘flexible’ inflation targeting and ‘flexible’ exchange rate where monetary policy errors were encouraged with stimulus (output gap targeting) followed by forex shortages, spikes in foreign borrowings, depreciation and default.