Friday, June 10, 2022

Sri Lanka's Economic Crisis

 

Sri Lanka has fallen into economic turmoil. The crisis has become so severe that food and fuel are in short supply. Reports of Sri Lankans attempting to leave the country have been circulating. The common destination is Australia where prospects are better economically. Inflation and shortages have also made the public more resentful of their government. Rice production was negatively impacted with the ban of chemical fertilizer. Rice is a staple for the country and the policy endangered food security. The ban was repealed, but farmers and fishers were harmed from the policy. The economic crisis is tied to a political one. The Rajapaksa family has dominated the politics of the island. Mahinda Rajapaksa has resigned as prime minister and other members of his family have done so. This does not mean their involvement in politics is over. Mahinda Rajapaksa has served as prime minister multiple times. A return to power would be no surprise for a powerful political family. The corruption that has been a part of the system has resulted in civil unrest. Sri Lanka might need major economic assistance. Sri Lanka  then would fall into massive debt that it would never be able to pay. India's influence could grow from the crisis. India is providing financial aid during the worst economic crisis Sri Lanka has seen. Sri Lanka seeks at least $6 billion  to get some relief. Options are limited to either the IMF or more aid from India.  

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