Why is the economy of Sri Lanka sinking???
Why is the economy of sri lanka sinking???
The war between russia and ukraine is not only causing loss of life and property, but it has also brought a period of an economic slowdown across the world. The deep effects of this recession are seen on sri lanka, the indian Ocean country situated in the south of India. The economy of sri lanka is continuously deteriorating. There has been a huge increase in the price of common food items to fuel in the country. people are buying petrol by standing in long queues. What is the reason that the condition of sri lanka has become so bad?
Inflation increased due to a decrease in foreign investmentThe inflation rate in sri lanka is the highest among Asian countries at around 15%. Because of this, inflation is increasing in the country. It is believed that such a situation has arisen due to the decrease in foreign investment. The government is making every effort to control this inflation. In the current conditions, the country has forex reserves of only USD 2 billion whereas this year the country has a liability of USD 7 billion. This situation has broken the back of Sri Lanka's economy. To overcome this, the country has set hopes from the international Monetary Fund (IMF), President Gotabaya Rajapaksa has appealed to the IMF to help Sri Lanka.
The war between russia and ukraine is not only causing loss of life and property, but it has also brought a period of an economic slowdown across the world. The deep effects of this recession are seen on sri lanka, the indian Ocean country situated in the south of India. The economy of sri lanka is continuously deteriorating. There has been a huge increase in the price of common food items to fuel in the country. people are buying petrol by standing in long queues. What is the reason that the condition of sri lanka has become so bad?
Inflation increased due to a decrease in foreign investmentThe inflation rate in sri lanka is the highest among Asian countries at around 15%. Because of this, inflation is increasing in the country. It is believed that such a situation has arisen due to the decrease in foreign investment. The government is making every effort to control this inflation. In the current conditions, the country has forex reserves of only USD 2 billion whereas this year the country has a liability of USD 7 billion. This situation has broken the back of Sri Lanka's economy. To overcome this, the country has set hopes from the international Monetary Fund (IMF), President Gotabaya Rajapaksa has appealed to the IMF to help Sri Lanka.