SRI LANKAN CRISIS:
A day ago, the prime minister of Sri Lanka, Ranil Wickremesinghe resigned. According to the speaker of Sri Lanka's parliament, president Gotabay Rajapaksha will also decide to step down. His resignation will be seen by 13th July.
 |
| President of Sri Lanka |
Possibly the worst economic crisis in history is taking place in Sri Lanka. The crisis started in the year 2019 on account of multiple compounding factors. Sri Lankan government. The Gotabaya government made large tax cards that affected government revenue. The foreign debt of Sri Lanka was increasing day by day. In 2005, it was 11.3 billion U.S.D and in 2020, it became 56.3 billion. The loans of. Exim Bank of China to build up Sri Lanka was a perfect example of death trap diplomacy. Despite China's claims that Chinese banks provide loans to Sri Lanka for the construction of Hambantota International Airport and Mattala Rajapaksa International Port. In April 2021, the president of Rajapaksha announced that Sri Lanka would use only organic fertilizers for farming. It affected the production of rice and tea, which causes economic losses. The Russo-Ukrainian war worsens the situation.
 |
| pm of Sri Lanka |
In 2021, the govt of Sri Lanka made a declaration about the worst crisis. An emergency was also introduced all over Sri Lanka. In addition to electric shortages and fuel shortages, this crisis led to inflation and health problems in Sri Lanka. The exports from foreign had also stopped because of the economic crisis. The crisis severely affected diplomatic relations.
It was the neighboring country, India, that came forward during the crisis. India pledged a total of 2.415 billion to overcome the fundamental constraint of external debts Later, Sri Lanka also received 1 billion dollars as a lifetime from India to buy essential items.
According to professionals, this crisis will continue up to 2023-24.
){kind=link}
0 Comments