Economists say government measures on external debt and taxes are among the causes of the worst economic crisis.
Sri Lanka, a major country in South Asia, is currently facing the worst economic crisis in its history. At present, the country’s foreign exchange reserves are at such a low level that the government has no dollars left to import oil, the unavailability of electricity has plunged much of the country into darkness, fuel rationing continues and There have been two deaths in the same context, after which the Sri Lankan government has deployed troops to maintain order in view of the growing crowds at petrol pumps. Food shortages and skyrocketing prices have devastated the lives of Lincoln citizens, with the Sri Lankan government recently announcing nationwide exams due to a paper crisis.
The economic crisis is escalating day by day and the Sri Lankan government is approaching the IMF with assistance from various countries to deal with the crisis.
The bulk of Sri Lanka’s income comes from tourism, and the general impression about the current economic crisis is that sanctions imposed by the Corona pandemic have ended tourism and Sri Lanka has had to contend with a financial crisis. ۔
However, according to economists, the government’s measures on external debt and taxes are among the causes of the worst crisis in Sri Lanka’s history. Sri Lanka has been steadily burdened with foreign debt since 2007. The debt, taken in different periods, has exceeded 11 11 billion, and the largest share of this debt, 36.4%, consists of loans from government international bonds.
More than 14% of Sri Lanka’s foreign loans are from the Asian Development Bank, which is more than 4.5 billion. Both Japan and China owe more than ارب 3.5 billion in debt. Also included are loans from India and other international financial institutions, including the World Bank and the United Nations. Over the past decade, China has lent more than پانچ 5 billion to Sri Lanka for projects to build highways, ports, an airport and generate electricity from coal. Most of these loans are under the Belt and Road Initiative of China.
According to some observers, the main reasons for the economic problems facing Sri Lanka are the economic policies of the government, which caused the country’s economy to decline even before the Corona epidemic.
According to international media reports, Sri Lanka’s foreign exchange reserves remain at 2. 2.31 billion, while it has to repay ارب 4 billion in external debt this year. The shortage of dollars in the country has led to a sharp rise in the prices of basic food items, including milk, in Sri Lanka, as well as in foreign exchange reserves.
The country is also facing fuel shortages due to the decline in global oil purchases.
Due to the shortage of dollars, Sri Lanka has closed its embassies in Iraq and Norway and its consulates in Australia. Earlier in December last year, Sri Lanka closed its diplomatic missions in Nigeria, Germany and Cyprus due to the dollar crisis.
