5 reasons to what led to the #SrilankaEconomicCrisis
I am tired of how much these Indian TV channels continuously show the coverage of SriLanka, the country that I have never been to but fascinated by. So after a continuous treading through the TV news channels to find the relevant information while still getting nothing, I thought to look it up online.
After reading awhile I came across chunks of outcries and information about hustle bustle management. Hence here is what I came across in a manner that you would enjoy. Give it a try chap…
1. Tourists didn’t shower it with love
Coronavirus hit us all. To some it hit badly. Sri Lanka is one of those fragile young chap that got the beating. The country’s major source of income come from the tourists. And when the international Borders were shut, there was no in and out of the country. Hence no one came. Hotels ran dry, jobs went out. It was a big blow to Lankans. Their revenue fell drastically.
2. Save Yo Earth
On a fine April day, the country woke up to see the birds chirp, beetles dance in daze. O…, Government suddenly banned the Chemical Fertilizer throughout the country. What! They Banned the f@#king Fertilizers. No preparations were made, Farmers were unaware, Rajpaksa just went on to save the world. Instantly there was a hit on the food productions throughout the country. Rice got sacrificed in the wise decision.
The ban was later reversed and a statement of regret was printed.
3. Give me Everything Tonight🎶
Sri Lanka Imports a lot of things. From petroleum, textile fabrics, foodstuffs and machinery to transportation equipment. There is very little local production. They used to export a Tea but that Save Yo Earth Campaign, you got it, smarty. They have to buy majority of things from outside. For that they need foreign cash…
4. Loans, Loans, Loans with no Bones!
This is a bit detailed. I’m sorry but bear it with me.
In February, the country was left with only $2.31 billion in its Foreign reserves. On the other hand it had a loan repayment of $4 Billion. And also Sri Lanka’s debt management programme, which depended on accessing International markets, derailed and foreign exchange reserves plummeted by almost 70 per cent in two years during the Pandemic. Hence the country was no longer able to pay for its essential imports.
5. Fake it! I’m a Genius.
That small island has got some experts of its own, Not made in China! They were constant in their suggestions that Rajpaksa Government should seek help from the IMF. Their wisdom was ignored. But when Putin bombarded Ukraine with flowers and the fuel prices climbed, the government did wake up and eventually drew up a plan to approach it. Now it’s too late.
Currently the island is facing power cuts lasting up to 13 hours. The government is unable to pay for essential imports, including fuel. Inflation is soaring and the common man is now finally on the streets.
