Sri Lanka's Economic Crisis: A Brief Overview

Abstract

Sri Lanka's economic crisis, which began three years ago, has resulted in great hardship for the people and has posed the greatest challenge to the government. Lanka is currently experiencing an economic and political crisis, which continues with high inflation and sporadic demonstrations throughout the country. The government of Sri Lanka requests citizens abroad to send home cash 13 Lankan banks have been placed on rating watch negative Sri Lanka defaults on $51 billion in external debt. Trouble is brewing on the island paradise. There is no food available. Sri Lankans have fallen into poverty by at least 500,000 in the last few months. There is no fuel, no medicines, and critical surgeries are being cancelled. According to doctors, the economic crisis may cause more deaths in Sri Lanka than COVID did. There are daily power outages and large-scale protests in the streets. The absence of power and the inability to obtain safe drinking water has resulted in significant difficulties in the provision of emergency health services. The safety net programmes have been interrupted. The situation in Sri Lanka is much more than just an economic crisis. Clearly, this is a humanitarian crisis. The question is, how did it occur, and how did the government of Lanka lose all of its money? The purpose of this research paper is to answer these questions. In addition, the author of the paper outlines a comprehensive analysis of the issue as well as the causes of the economic crisis.