Sri Lanka is on the brink of disaster

Sri Lanka is on the brink of disaster The government has no money left to import fuel or medical supplies. Students' exams were canceled due to lack of money to import paper.

 Inflation has skyrocketed. On Monday, the Sri Lankan gas regulator increased the price of a 12-kg gas cylinder by Rs 1,400, an egg at Rs 35, a chicken at Rs 1,000, petrol at Rs 283 a liter and diesel at Rs 220 a liter. Many major Sri Lankan cities have been blacked out since Friday. There are no resources to restore power. People are dying. There is no food, no treatment and no necessities. 

Doctors are helpless because they are not One of the main problems of the worst economic crisis in Sri Lanka is its huge foreign debt and debt service burden, especially the huge debts of IMF, China, Japan, now they have nothing to repay the debt and Sri Lanka is on the verge of default or bankruptcy. The Lincoln rupee fell from 201 to 280 against the dollar in 14 days.

 Sri Lanka's ruling Raja Pakse brothers are under increasing pressure to resign. In this context, the whole of Sri Lanka is burning with the sight of protests The main source of income for Sri Lanka is tourism, which has been hit hard by the krona. Factories closed due to the Corona Lockdown, and its exports fell by about 75%

Sri Lanka is facing a heightening fiscal and philanthropic extremity with fears it could go void in 2022 as affectation rises to record situations, food prices rocket and its resources run dry. The meltdown faced by the government, led by the tyrannizer chairman Gotabaya Rajapaksa, is in part caused by the immediate impact of the Covid extremity and the loss of tourism but is compounded by high government spending and duty cuts eroding state earnings, vast debt disbursements to China and foreign exchange reserves at their smallest situations in a decade. 

Affectation has meanwhile been prodded by the government publishing plutocrat to pay off domestic loans and foreign bonds. According to the report of World Bank people have fallen below the poverty line during the epidemic, the fellow of five times’. Affectation hit a record high of11.1 in November and rising prices have left those who were preliminarily well off floundering to feed their families, while introductory goods are now unaffordable for numerous. After Rajapaksa declared Sri Lanka to be in a profitable exigency, the service was given the power to ensure essential particulars, including rice and sugar, were vended at set government prices – but it has done little to ease people’s straits.

 The situation has got so bad that long ranges have formed at the passport office as one in four Sri Lankans, substantially the youthful and educated, say they want to leave the country. Foraged citizens, it's evocative of the early 1970s when import controls and low product. One of the most burning problems for Sri Lanka is its huge foreign debt burden, in particular to China. It owes China more than$ 5bn in debt and last time took a fresh$ 1bn loan from Beijing to help with its acute fiscal extremity, which is being paid in inaugurations.

 Announcement In the coming 12 months, in the government and private sector, Sri Lanka will be needed to repay an estimated$7.3 bn in domestic and foreign loans, including a$ 500m transnational autonomous bond prepayment in January. Still, as of November, available foreign currency reserves were just$1.6 bn. In a usual approach, government minister Ramesh Pathirana said they hoped to settle their once canvas debts with Iran by paying them with tea, transferring them$ 5m worth of tea every month in order to save “ important-required currency”. 

 The opposition MP and economist Harsha de Silva lately told congress that foreign currency reserves would be-$ 437m by January coming time, while the total foreign debt to service would be$4.8 bn from February to October 2022. The Governor of the Central Bank Ajith Nivard Cabraal made public assurances that Sri Lanka could pay off its debts “ seamlessly” but Wijewardena said the country was at substantial threat of defaulting on its disbursements. Meanwhile, Rajapaksa’s unforeseen decision in May to ban all toxin and fungicides and force growers to go organic without warning has brought a formerly prosperous agrarian community to its knees as numerous growers, who had come habituated to using – and frequently stereotyping – toxin and fungicides, were suddenly left without ways to produce healthy crops or combat weeds and insects.

 Numerous stewing a loss decided not to cultivate crops at each, adding to the food dearths in Sri Lanka. The government made a dramatic Volte-face in late October and growers are now floundering to cover the high costs of imported toxins without help.

 In an attempt temporarily to ease the problems and stave off delicate and most likely unpopular programs, the government has resorted to temporary relief measures, similar as credit lines to import foods, drugs, and energy from its neighboring supporter India, as well as currency, barters from India, China, and Bangladesh and loans to buy petroleum from Oman. Still, these loans give only short-term relief and have to be paid back snappily at high-interest rates, adding to Sri Lanka’s debt cargo.