Sri Lanka is currently experiencing a severe economic downturn, which has been described as the most significant crisis the country has faced in its modern history. The government is anticipating positive developments in negotiations with the International Monetary Fund regarding a $2.9 billion program, which would provide much-needed support to the country’s struggling economy.
Additionally, reports indicate that China has agreed to restructure Sri Lanka’s debt, providing further relief for the nation’s financial situation. The country’s President is set to deliver a special address to Parliament, where he will provide an update on the state of the economy and progress in negotiations with international financial institutions.
Sri Lanka has been facing a severe economic crisis since 2019 that has resulted in significant social and political unrest. The situation has been compounded by a range of factors, including the COVID-19 pandemic, a shift towards biological farming, and other steps that have left the government unable to fund essential services.
In addition, the country’s significant dependence on tourism has been severely impacted, with the industry virtually grinding to a halt due to the pandemic. As a result of these factors, the Sri Lankan government has been unable to import essential goods, such as fuel, food, and medicine, leading to daily power cuts and shortages of critical supplies.
The economic crisis has triggered widespread public protests, prompting the government to declare a state of emergency. President Gotabaya Rajapaksa fled the country after facing months of demonstrations, and the situation has continued to deteriorate since then. It positive news will surely give a breath of relief to the Sri Lankan citizens.