Sri Lanka warns of high food prices after floods

January 17, 2011 (AFP) - Sri Lanka warned Monday that food prices could shoot up after devastating floods in the north and east of the country destroyed rice and vegetable crops. Disaster Management Minister Mahinda Amaraweera said vegetable prices had already been affected because of the impact on growing areas that were swamped by unusually heavy monsoon rains.

More than a million people were displaced by the floods that began nine days ago and at least 40 people have died.

"We have a buffer stock of rice that is good for three months. That means there will be no immediate impact on the price of rice, but vegetables are already going up in price," Amaraweera told AFP.

Sri Lanka's annual inflation rose to 5.

9 percent in December compared to 3.4 percent a year earlier, with the issue set to figure in local government elections due by March.

Sri Lanka recently began importing chicken and eggs in a bid to stabilise local prices, but the minister said it would not be practical to import vegetables too.

He said the authorities were still working out the economic cost of the devastating floods, which some local experts have said could amount to $500 million.