The government is running out of money to pay the salaries of government employees as the World bank extends its hand to sri lanka, which is in the midst of a severe economic crisis. The Sri Lankan government is now taking preparations to print one lakh crore rupees as a result of this. The Corona outbreak has had a significant economic impact on Sri Lanka. Inflows of foreign currency into sri lanka have been significantly hampered. Sri Lanka's currency has depreciated significantly.
As a result, the country is stuck in a massive economic crisis, with fuel shortages, power outages, and price increases for gasoline and diesel. As a result, people's conflicts against the state have become more intense. Due to a lack of foreign exchange reserves, the country is forced to borrow on a regular basis. It has also fallen insolvent, unable to repay the loan's interest. Sri Lanka's foreign debt is growing at an alarming rate every year. In addition, there is a $ 3 billion current account deficit. This includes a one-billion-dollar international gold bond due in July. With a 14.3 percent holding in the Asian Development bank, sri lanka is the second largest lender.
Inflation climbed to 33.8 percent in April, up from 21.5 percent in March. The cost of basic services and the costs of vital commodities have increased in tandem with the rise in fuel prices, particularly gasoline and diesel. sri lanka has applied for loans from the World bank and the international Monetary Fund to help it get out of its economic crisis. This is still being worked out. The World bank, on the other hand, has firmly stated that it will not lend to sri lanka unless it has a credible economic plan.
As a result, the country is stuck in a massive economic crisis, with fuel shortages, power outages, and price increases for gasoline and diesel. As a result, people's conflicts against the state have become more intense. Due to a lack of foreign exchange reserves, the country is forced to borrow on a regular basis. It has also fallen insolvent, unable to repay the loan's interest. Sri Lanka's foreign debt is growing at an alarming rate every year. In addition, there is a $ 3 billion current account deficit. This includes a one-billion-dollar international gold bond due in July. With a 14.3 percent holding in the Asian Development bank, sri lanka is the second largest lender.
Inflation climbed to 33.8 percent in April, up from 21.5 percent in March. The cost of basic services and the costs of vital commodities have increased in tandem with the rise in fuel prices, particularly gasoline and diesel. sri lanka has applied for loans from the World bank and the international Monetary Fund to help it get out of its economic crisis. This is still being worked out. The World bank, on the other hand, has firmly stated that it will not lend to sri lanka unless it has a credible economic plan.
