Sri Lanka’s Fall from Grace

Sri Lanka’s Fall from Grace

Sri Lanka, a country with un spoilt sandy beaches, pristine coral reefs and breath taking natural beauties. But, it is in the news for all the wrong reasons. No, not the governments poor handling of the COVID-19 pandemic.

Sri Lanka is facing an economic crisis due to the depletion of its foreign reserve. The roots of this crisis lie in decades of economic mismanagement by successive governments. This has led to a sustained twin-deficit the country’s national expenditure exceeds its income and its production of tradable goods and services are insufficient.

To make matters worse, widespread tax cuts implemented just before the COVID-19 pandemic badly affected the Sri Lankan economy. The pandemic hit the lucrative tourism sector particularly hard while sapping the remittance sent by foreign workers.

The government used foreign debt to fund various infrastructure projects. The loan repayment of these projects drained the already dwindling foreign reserves.

The deathblow came with the governments lack of coordination & poor implementation in switching to complete organic farming. A widespread ban on fertilizers hit the struggling agricultural sector hard. Crop yields dropped significantly and food shortage was looming over the horizon.

All these set the stage for an impending crisis. It began as public outcry which escalated to widespread violence and the removal of the government from office.

The neighboring countries & the international community have stepped up their relief efforts. Plans for economic recovery are also underway.

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Hello and welcome to my Profile. I completed my BSc. at Bangladesh University of Engineering & Technology from Department of Naval Architecture & Marine Engineering. Currently, I am conducting research & posting articles related to Microsoft Excel. I am passionate about research & development and find innovative solutions to problems.

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