Sri Lanka - Update on the Economic crisis

In the context of the economic crisis scenario in the modern age, Sri Lanka seems to stand out in the present. Inflation is on the rise, the cost of living going up manifold, and the lives of people have become in a miserable state. The weakening of the currency has led to many problems domestically and also on the international trade front.

Domestically the prices of staple food products have skyrocketed in prices, making people shell out much more for sustaining their lives. From rice to wheat, the amount shelled out per individual is roughly close to 220-240 Sri Lankan rupees. That is substantially high in terms of the prices. With inflation raging at a rate of 30.5% or thereabouts since the last week of March, the nation is facing multiple problems. Significant shortages in food items, and fuels, have become the norm. With the ban on imports since 2020, the import bill for the nation is said to be standing at an all-time high. The nation also struggles with many power cuts which go for as long as 13-15 hours a day.

With the help taken from the nations like India and China more in monetary terms, the nation is not able to make any temporary fix to their crisis. With growing dissent from the people and the growing number of protests from its citizens is showing the nation in a much sorry state of affairs on the international front. With people struggling to meet ends, people take a minimum of two jobs to make their ends meet. Some have gone to the extent to cross borders to get better lives in nations like India, most of them being illegal immigrants. Desperate measures have been taken by people in search of a better life. With debts rising close to $4.5 billion owing to many creditors and it’s bound to rise, the nation is in really bad shape economically. Many international rating organizations like Moody’s and Fitch have downgraded the nation in terms of debts repayment.

The important aspect Sri Lanka needs to look at is in terms of the basic facilities and food items, in particular, to be provided to its citizens. Fuel, staple food items, and medical assistance to the old and weak citizens should be a high priority. Many of the nation’s hospitals have stopped their operations owing to the fact of lack of medicines and medical staff to care for their patients. The situation is absolutely grim at the moment for the nation as it stands.

The only way out for the nation at the moment is to opt for international assistance from the IMF and other international bodies for help. This would help ease out the loans the nation owes to its borrowers. In terms of the political front, the parties should rather come together with a consensus to come out of the economic crisis. Let’s hope to see the nation getting back strong economically.