Thousands and millions of people have been on the streets for months. People are demanding the resignation of the President and the Prime Minister.
Prime Minister Mahinda Rajapaksa resigned in May when people’s anger broke out on the streets. And now President Gotabaya Rajapaksa is also going to resign.
Not only this but the number of trains has also been reduced. Hundreds of people are forced to stand in line for hours to buy fuel in several major cities, including the capital Colombo. Sometimes people also have clashed with the police and the army.
According to the sources, the situation in Sri Lanka has become so bad that schools have to be closed. Fuel has also been limited to only essential services.
Due to a shortage of petrol and diesel, patients are not able to go to the hospital. Food prices are skyrocketing.
Who is responsible for the situation?
1. Increased closeness with China
Relations with China have grown since the Mahinda Rajapaksa government came to power in 2015.
Huge loans were provided by China in the pretext of infrastructure. China is believed to be the major reason behind Sri Lanka’s economic crisis.
2. Decrease in foreign exchange reserves
Sri Lanka’s foreign exchange reserves decreased sharply due to taking more debt and earning less.
In April 2018, there was a foreign exchange reserve of about $ 10 billion, which has come down to $ 1.7 billion by May 2022.
3. Debt increased
The foreign debt on Sri Lanka continued to increase. According to Sri Lanka’s central bank, the country had an external debt of $21.6 billion in 2010, which increased to $46.6 billion in 2016.
At present, Sri Lanka has a debt of more than $ 51 billion.
4. Hit on tourism due to Corona
Sri Lanka’s economy is heavily reliant on tourism. Corona has had a negative impact on tourism.
The share of tourism and allied sectors in Sri Lanka’s GDP is around 10%. The absence of international visitors also resulted in a decline in foreign exchange reserves.