The rapid falling of the economic situation of Sri Lanka is quite frightening for the entire region as the country goes through an extreme inflation.
Economic situation of Sri Lanka
The situation has come in this today because of mismanagement on the part of the government and untimely tax cuts. The pandemic also has a role to play in this situation today as the large part of the country’s revenue comes from the tourism sector and export of tea.
The country had a huge debt to a lot many of the foreign investors and the Covid 19 situation has further worsened the situation with too many lockdowns. As a result of which, the country’s economy has been falling and the value of the currency is facing is dip in the economic reserves.
The sudden dip in the country’s economy has resulted to 10- hour power cut in the country. The country’s debt has made it unable to pay for a lot many of the resourcesincluding food and water supply. This has impacted the lives of many, leaving people stranded in the insland nation.
People in Sri Lanka are witnessing long queues for the basic survival needs. Theres a shortage of food, fuel and water. The power has been cut off for 10- long hours . The people have their anger towards the government to such an extent that the bar is raised high.