Sri Lanka Economic Crisis: Emergency has been imposed in Sri Lanka, facing an economic crisis. The country has reached the verge of bankruptcy due to the debt trap. The anger of the people against the President has erupted. People are protesting violently by taking to the streets.
The situation in the country has become such that the prices of food items are also touching the sky. It is being told that for almost a decade, Sri Lanka was under heavy pressure from foreign debt. The foreign debt of Sri Lanka reached 41.3 per cent of its GDP in 2019. The Corona period further broke Sri Lanka, which was suffering from a shortage of foreign exchange.
The tourism industry, a significant source of Sri Lankan foreign exchange, came to a standstill due to the Corona epidemic. Imports were banned in 2020 to save foreign exchange. The prices kept increasing due to the decrease in imports; the inflation rate went up to more than 17.5 per cent. At present, the value of one dollar has become equal to 292 Sri Lankan rupees.
Country on the verge of bankruptcy
Petrol, diesel and gas prices are increasing wildly in Sri Lanka. It affected ordinary people. When the situation worsened, Sri Lanka started taking foreign loans, but it was also challenging to repay them. It is being told that such a situation has become Sri Lanka in China’s debt. Sri Lanka has taken 36 per cent of its total debt from China. Because of this, today, Sri Lanka has reached the verge of bankruptcy.
Sri Lanka is breathless from the burden of debt!
The total external debt of Sri Lanka is 7 trillion rupees. Out of this, India has given a loan of 19 thousand crore rupees. The Sri Lankan government has also asked for a loan of Rs 11 thousand crores more from India. Sri Lanka is entirely dependent on other countries in terms of crude oil. Sri Lanka buys 80 per cent of its oil from other countries.
The worst situation in Sri Lanka in 74 years
Sri Lanka does not have the money to pay off the foreign debt. The treasury is empty. Many trains are halted. All the powerhouses are off. There is electricity for more than half the time. There is a shortage of medicines in the hospitals. There are long queues for fuel. Sri Lanka has had the worst conditions in 74 years.
Electricity supply has come to a standstill in 2.20 crore houses. There is no diesel left in the fuel stations. Petrol has become costlier by 92 per cent and diesel by 72 per cent in three months.
The cost of one litre of petrol is Rs 303
The price of one litre of petrol in Sri Lanka has gone up to Rs 303. Medicines have become 30 per cent more expensive. Diesel is entirely exhausted. There is a shortage of paper in the country. The examinations have been postponed indefinitely. Sri Lanka has reached $51 billion in debt. Five lakh people are trapped in poverty in the country.