Sri Lanka Reels From Its Worst Ever Economic Crisis

Hit by the worst economic crisis in its history, sri lanka is on the brink of bankruptcy. Irrational policy decisions of the ruling rajapaksa clan have destroyed the island’s economy which was recovering from the ravages of the pandemic

- Lakshmi Subramanian

The city of Colombo is famous for its pristine beaches, clean streets, heritage buildings, delicious cuisine and zestful people. Leaving behind the bitter memories of the decades-long civil war which ended in 2009, and the 2019 Easter bombings, the Sri Lankan capital and the rest of the country have been returning gradually to normalcy. Yet, all the progress the country has made in that journey seems to be going up in smoke as it faces a grave economic crisis, leaving it on the verge of bankruptcy.

Matters have taken a turn for the worse since January, with food and fuel prices going out of control, and now, crippling shortages. With its foreign exchange reserves nearly depleted, the island nation of 2.2 crore people is unable to import even basic necessities like rice, milk and kerosene.

President Gotabaya Rajapaksa, praised as “Terminator” by his supporters for putting an end to the civil war, said his country would work with the International Monetary Fund (IMF) to tackle the crisis. He put the blame for the downturn on previous governments. “When those who contributed to the crisis are criticising the government, I am trying to resolve it and provide relief to the people,” said Gotabaya.

But the president’s explanation has not gone down well with the people. Anger, frustration and desperation to grab whatever food and fuel is available is a common sight in the streets of Colombo. Armed forces have been deployed to oversee fuel distribution in many places.