sricrisis1Raagini Sharma
(RIEAS Senior Analyst)

Copyright: @ 2022 Research Institute for European and American Studies ( Publication date: 4 June 2022

Note: The article reflects the opinion of the author and not necessarily the views of the Research Institute for European and American Studies (RIEAS)

1. Abstract

Sri Lanka, an island nation of 22 million people is facing a huge economic crisis and political turmoil with protestors taking on the streets across the nation. It’s the first-ever economic crisis that the country has witnessed after gaining independence in 1948. The crisis has resulted in a sordid socio-economic plight wherein government’s coffers are empty and there is no money with the people to buy essential goods like food and medicine. The pandemic, rising energy prices, and populist tax cuts have all had a significant impact on Sri Lanka's economy. A persistent lack of foreign cash and skyrocketing inflation has resulted in serious shortages of medications, fuel, and other necessities. The Ministry of Finance is finding it difficult to raise $5 million to import gas. This depletion of foreign reserves has made the citizens spend hours together in long queues outside the fuel stations. The country has run out of money to pay for fuel, power and energy. The economy of the country has come to a standstill with the total debt amounting to be $51 billion. .... Read more

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