Lanka drowned in debt; The biggest financial crisis after independence World

Colombo
Sri Lanka is facing insecurity due to the worst economic crisis since independence. It is reported that the country has a debt of about 51 billion dollars. The government failed to import essential commodities and fuel. Neither the amount borrowed nor the interest is repaid.

At the end of 2019, the foreign exchange reserves of the country were 7.6 billion dollars, which had reduced to 1.93 billion dollars by March 2020. At least 400 crores of dollars have to be found to overcome this shortfall. Inflation was 50 percent higher in June. The people of Lanka are hoping that there may be an interim budget in July or August.

The security scare following the terrorist attacks in 2019 and the Covid-19 pandemic have also affected tourism, a major source of income. With the currency depreciating by 80 percent, imports became more expensive. Inflation ran rampant. Industry figures also indicate a 57 percent increase in food prices.