Begin typing your search above and press return to search.
proflie-avatar
Login
exit_to_app
Can Trump wield his big stick?
access_time 22 Nov 2024 10:39 AM GMT
election commmission
access_time 22 Nov 2024 4:02 AM GMT
Champions Trophy tournament
access_time 21 Nov 2024 5:00 AM GMT
The illness in health care
access_time 20 Nov 2024 5:00 AM GMT
The fire in Manipur should be put out
access_time 21 Nov 2024 9:19 AM GMT
America should also be isolated
access_time 18 Nov 2024 11:57 AM GMT
DEEP READ
Munambam Waqf issue decoded
access_time 16 Nov 2024 5:18 PM GMT
Ukraine
access_time 16 Aug 2023 5:46 AM GMT
Foreign espionage in the UK
access_time 22 Oct 2024 8:38 AM GMT
exit_to_app
Homechevron_rightWorldchevron_rightSri Lanka fears...

Sri Lanka fears bankruptcy this year

text_fields
bookmark_border
Sri Lanka fears bankruptcy this year
cancel

There are fears Sri Lanka will go bankrupt in 2022 as inflation reaches a record high, food prices spike, and its coffers run dry.

The immediate impact of the Covid crisis, coupled with a loss of tourism has affected the president Gotabaya Rajapaksa led government to implode. This problem is made worse by high government spending and tax cuts eroding state revenues, massive debt repayments to China and foreign exchange reserves that are at their lowest level in more than 10 years.

In the meantime, the government has been printing money to settle domestic loans and foreign bonds, which has caused inflation.

According to the World Bank, over 500,000 people have fallen below the poverty line since the pandemic began, which is the equivalent of five years' progress in eliminating poverty.

In November, inflation reached a record high of 11.1%. Those who previously had plenty are now struggling to feed their families, and basic goods are out of reach, reports The Guardian. According to the report, after Rajapaksa declared Sri Lankans to be in an economic emergency, the military was given authority to set prices for essential items, such as rice and sugar. However, it hasn't significantly eased the people's woes.

Show Full Article
TAGS:Sri LankaBankruptcy
Next Story