What Lead To Sri Lanka’s Worst Economic Crisis
Sri Lanka’s ruling Rajapaksa family is confronting mounting public anger, political defections amidst the island’s worst economic crisis following the post-independence history and calls for resignations. The family’s fall right from grace has truly been rapid and precipitous. Considering November 2019, Gotabaya Rajapaksa convincingly truly won the presidential election following just over 52 percent of the vote. A few months later, an alliance led by his brother Mahinda truly won the parliamentary elections securing an ideal percentage of votes called 60%.
What About The Sri Lanka Economic Crisis Reason –
Sri Lanka’s economy is going through a difficult time indeed. Its food prices are soaring. The thing cannot be ignored that its coffers are truly running empty. It can be said that the nation seems to be on the verge of a “humanitarian crisis” as UNDP says.
Following to World Bank estimates, 5 lakh people in Sri Lanka have truly dropped below the poverty line since the epidemic hit the bank termed a “huge setback comparable to 5 years’ worth of development
According to some sources, the rating firm Fitch cut Sri Lanka’s credit rating last month because of concerns of sovereign default on the country’s $26 billion foreign debt.
Here, it needs to be mentioned that the Census and Statistics Department has truly released data introducing that the country’s GDP declined by 1.5 percent while having the third quarter of 2021.
Let’s Know More About The Sri Lanka Economics Crisis Reason –
Considering a nation largely reliant on imports of energy food grains, supplies, essential commodities and medications and having a foreign reserve of just $2.31 billion is truly a financial nightmare regarding the government.
Gotabaya Rajapaksha is the president of this nation and it is truly running a trade imbalance of $10 billion which does not go in favor to alleviate the issue in the least.
Talking about the position, it is truly as an experienced politician regarded in the form of a significant strategist in Colombo’s struggle against the LTTE regarding a decade and a half ago, he and his brothers would have truly been aware of the legacy that they would be receiving right from their forefathers. The tax reduction bonanza was truly implemented in 2019 and did not introduce the intended effects coming in the form of a revenue loss.
Sri Lanka Economic Crisis China Involvement –
It is all about the early this month when it comes to visit Chinese Foreign Minister Wang Yi has truly demanded a suspension following debt repayments, considering the topic of “problematic chinese loans” came back following the international limelight in the context of the second time in as many months.
We hope that you found the prominent points regarding the Sri Lank crisis. Being an aware citizen, you must be aware of the facts that you are going in the right way indeed. Here, we have simplified all about it in a detailed manner.