The economic crisis in Sri Lanka

The economic crisis in Sri Lanka

By Karuna Thapa

Kathmandu, March 21

Sri Lanka is in the middle of a severe economic downturn. The school examinations have been suspended owing to the financial situation, according to reports.

The school’s term test, which was scheduled to begin yesterday, has been postponed
indefinitely due to a lack of documentation, according to The Guardian, which reported to Sri Lankan officials.

Sri Lanka is experiencing its biggest financial crisis since its 1948 independence. Importing items is difficult due to a lack of money.

The scarcity of paper has made the examination impossible to take, according to the
Department of Education in Sri Lanka’s Western Province. Since paper and ink cannot be imported because there is no foreign cash.’

The scarcity of foreign cash has also had a significant impact on Sri Lanka’s energy industry.

Load shedding has been a problem for Sri Lankans for a long time. People are waiting in huge lines to purchase milk powder, sugar, lentils, rice, oil, and other basic products.

This year, Sri Lanka owes nearly $7 billion in debt. However, by the end of February, the
country’s foreign exchange reserves had dropped to just 2.3 billion dollars. According to the same data, Sri Lanka does not have enough foreign currency to buy basic necessities.

Sri Lanka required financial aid from the International Monetary Fund as the situation
worsened (IMF). The International Monetary Fund (IMF) has stated that it is considering
offering financial support to Sri Lankan President Mahinda Rajapaksa.

Sri Lanka was also said to have requested financial assistance from its biggest ally, China.

On Thursday, India announced a $1 billion credit facility for Sri Lanka, which is in the middle of a financial crisis. The deal was struck when Sri Lankan President Gotabaya Rajapaksa arrived in New Delhi for a three-day visit on Wednesday.

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