Leading world expert on stopping hyperinflation, Steve Hanke shared that the only way to save Sri Lanka’s crumbling economy is to dump the rupee and instill a currency board.

“Today, I measure inflation in #SriLanka at a roaring 49 percent/yr. Sri Lanka's currency crisis and recent fuel price hikes are sinking LKA,” said the Johns Hopkins University professor of applied economics.

He noted that to ease the crisis, the island nation needs to have in place a currency board, similar to what was there in 1884 until the 1950s.

Since 1 January 2022, the Sri Lankan rupee has depreciated by 26 percent against the US Dollar, he pointed out.

The severe balance of payments crisis and recent fuel price hikes are sinking the country, said Hanke.