Sri Lanka Economic Crisis is Getting Worse

[YOSHIE]

What do you think about the economic crisis in Sri Lanka?

I am very concerned about the current state of the economy in Sri Lanka, I just saw on private TV about the crisis and food shortages in Sri Lanka, many women who sell themselves only to buy food, milk, gas, medicine and so on, What's even worse is that government employees are laid off to do other activities, so they can earn money to eat.

I think especially the UN should address what happened in Sri Lanka, the initial steps and actions and the next step is food concern and assistance from other countries.

What happened in Sri Lanka, was really the worst and worst to the economy there.

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[Botnake]

sri lanka is currently in a very difficult situation, a severe economic crisis has destroyed the lives of people in the area, is it true that the main cause is the accumulated debt? I don't think debt caused Sri Lanka's crisis, but it was the crisis that made Sri Lanka unable to pay its debts. 

I think there is a long chain that made Sri Lanka experienced the worst crisis, Sri Lanka experienced a prolonged conflict that hampered its economic growth, and 19% of its revenues depended on tourism and the COVID-19 pandemic hit the tourism sector hard. 
and the cause most responsible for the crisis that occurred was a corrupt government

Their corrupt government officials also took advantage of the pandemic that increased the debt of Sri Lanka and yes, they're the most responsible for the crisis happening in their country. The sad part is, that innocent people are paying for their debt and suffering because of their corruption. We can't blame the people who are protesting because they're fighting for their rights. If their country's crisis will get worse, their economic situation might collapse in the future.

Sri Lanka's economy has collapsed. let me explain a little bit as far as i know.

actually during the campaign period before becoming president, he had made a lot of promises and he did it after becoming president by cutting massive taxes. Then when Sri Lanka experienced an economic shock, he issued a policy of currency devaluation which caused a shortage of food and energy resources in the country. 

The president of Sri Lanka has an unreasonable fission, he has ambitions to make Sri Lanka an organic country, prohibit all forms of import of pesticide fertilizers which is strongly opposed by farmers in Sri Lanka who are ultimately unable to produce their agricultural materials.

and all the financing they receive from outside is used solely for subsidies. which means, so that people will trust and regard their president as a hero. and in the end, when the covid-19 pandemic occurred, all the dilapidated things he had been doing were revealed.
overall everything i said was the beginning of the cause of the crisis that happened to sri lanka.

Honestly, that's the usual problem that every country has to face and endure, also that is just the consequence after electing the officials who are just good at delivering sweet words and promises when in-fact they don't have that much experience and knowledge how to run a country and the people residing on it.

Just like Sri Lanka, the president has an ambition which is okay but that ambition won't give benefit to its countrymen especially for the lower class people. Sri Lanka president tried to make his country an organic country block all effective ways like pesticides and fertilizers instead of listening to the actual farmers who plows the land and knows every situation in the field.

[Fortify]

“Today in this country we have a fuel crisis, a food shortage, we have the head of the World Food Program coming here and we have several matters to discuss with the IMF,” Wickremesinghe said. “Therefore, if this government leaves there should be another government.”

Saturday the 9th of July the Sri Lankan palace finally became the final point where everything broke and was unavoidable. The crisis that befell this country is getting more and more unstoppable, plus the impact of the pandemic and the death of the tourism industry due to terrorist attacks in 2019. Protesters burst into the palace. Sri Lanka's president and prime minister inaugurated himself and fled by plane.
 
Some of Sri Lanka problems which I summarize as follows:

• Debt swells to $51 billion
• Corruption has increased dramatically
• High imports to meet needs are not supported by exports to global markets
• Gasoline out of stock
• Breakthrough inflation reaches 60%
• Civil servants are not paid
• Power failure
• School closed
• Hospitals as health facilities are also collapsing
• Silenced freedom of speech, and
• People experience experiences from all sectors, especially the economy in supporting their daily needs (food, drink, clothing, and housing).

From this incident, a corrupt government that only cares about personal interests on the basis of ambition will lead to destruction. An unbalanced economic system and uncertainty about campaign promises are the main weapons.

What do you think about the economic crisis in Sri Lanka?

Unfortunately this is what happens when the majority of your population relies on tourism as the primary source of income, because that got wiped out and is only just starting to recover after years of Covid. The wealthiest countries in the world tend to be those are manufacturer either goods or provide valuable services, they have a strong culture of research along with many independent institutions, backed by a powerful education system passing along knowledge. Unfortunately it is very easy to govern badly and steal a lot of public money when you don't have all those protections in place. It looks like the spiral is only destined to get worse because the current poverty leads to even subtle changes like widespread deforestation when other fuel sources have vanished.

[Davidvictorson]

Some of Sri Lanka problems which I summarize as follows:

• Debt swells to $51 billion
• Corruption has increased dramatically
• High imports to meet needs are not supported by exports to global markets
• Gasoline out of stock
• Breakthrough inflation reaches 60%
• Civil servants are not paid
• Power failure
• School closed
• Hospitals as health facilities are also collapsing
• Silenced freedom of speech, and
• People experience experiences from all sectors, especially the economy in supporting their daily needs (food, drink, clothing, and housing).

What do you think about the economic crisis in Sri Lanka?

Some months ago, I watched with a heavy heart a BBC report on the Sri Lankan economic crisis and I never thought it would get to this stage. I understand to a degree what is going on there and how Sri Lankans feel because I am currently living in a country with the same problems. Universities have been closed since the past 5-months, the prices of commodities are through the roof, the government a couple of days ago silently increased the price of petrol, the national grid collapsed a day ago, civil servants and pensioners are being held salaries for over 24 months, police brutality, increase in terrorism and kidnapping with support from some powerful people in the government and many more. One this is sure, we may not at this time have an uprising like the the Sri Lankans but the youths are determined to come out en mass and vote in  out the terrible people in government in the forthcoming general elections and ensure that the cabals don't put anyone of their puppets in Power. This is our form of uprising

[Gyfts]

sri lanka is currently in a very difficult situation, a severe economic crisis has destroyed the lives of people in the area, is it true that the main cause is the accumulated debt? I don't think debt caused Sri Lanka's crisis, but it was the crisis that made Sri Lanka unable to pay its debts. 

I think there is a long chain that made Sri Lanka experienced the worst crisis, Sri Lanka experienced a prolonged conflict that hampered its economic growth, and 19% of its revenues depended on tourism and the COVID-19 pandemic hit the tourism sector hard. 
and the cause most responsible for the crisis that occurred was a corrupt government

Their corrupt government officials also took advantage of the pandemic that increased the debt of Sri Lanka and yes, they're the most responsible for the crisis happening in their country. The sad part is, that innocent people are paying for their debt and suffering because of their corruption. We can't blame the people who are protesting because they're fighting for their rights. If their country's crisis will get worse, their economic situation might collapse in the future.

Sri Lanka's economy has collapsed. let me explain a little bit as far as i know.

actually during the campaign period before becoming president, he had made a lot of promises and he did it after becoming president by cutting massive taxes. Then when Sri Lanka experienced an economic shock, he issued a policy of currency devaluation which caused a shortage of food and energy resources in the country. 

The president of Sri Lanka has an unreasonable fission, he has ambitions to make Sri Lanka an organic country, prohibit all forms of import of pesticide fertilizers which is strongly opposed by farmers in Sri Lanka who are ultimately unable to produce their agricultural materials.

and all the financing they receive from outside is used solely for subsidies. which means, so that people will trust and regard their president as a hero. and in the end, when the covid-19 pandemic occurred, all the dilapidated things he had been doing were revealed.
overall everything i said was the beginning of the cause of the crisis that happened to sri lanka.

The energy shortages aren't to be taken lightly. We knew this was coming for months: https://www.eco-business.com/news/sri-lankas-economic-crisis-exposes-gaps-in-renewable-energy-push/

This article is from April. When the war in Ukraine started, all the countries that had foolishly shortened their energy capacity through green infrastructure, and began to rely on outside sources for their oil/gas, that they would eventually face an extreme crisis once the flow of oil/gas began to curtail. Except for Sri Lanka, they already had large amounts of debt, a looming preexisting energy shortage, and low economic growth.

COVID-19 and government mismanagement played a role and their economy was already headed downward, the energy crisis just accelerated what was already a doomed fate.

[Ahli38]

There are several ways that the Sri Lankan government can do to rise from the economic crisis. one of them is by providing massive incentives in the form of reducing tax rates and also reducing interest rates. or also by means of fiscal expansion. although this method will run slowly however. can be very effective when done correctly and honestly.

such as Finland which became one of the prosperous countries by upholding honesty in social life and government.
if people are used to lying and the government is corrupt (dishonest). then the destruction of the country will gradually occur. but it is very difficult to change the habit of a person who is accustomed to being dishonest to one who is honest.

[naira]

Some months ago, I watched with a heavy heart a BBC report on the Sri Lankan economic crisis and I never thought it would get to this stage. I understand to a degree what is going on there and how Sri Lankans feel because I am currently living in a country with the same problems. Universities have been closed since the past 5-months, the prices of commodities are through the roof, the government a couple of days ago silently increased the price of petrol, the national grid collapsed a day ago, civil servants and pensioners are being held salaries for over 24 months, police brutality, increase in terrorism and kidnapping with support from some powerful people in the government and many more.

First of all, what happened to you I am very concerned, I hope you return to a better condition and be resolved quickly. You have survived so far is a good step to survive in the middle of an unbalanced economy. Taking to the streets through demonstrations is a form of calling for justice, so I hope it's not marked by excessive fuss. If in the end you and the youth feel that their voices are being heard by the government, then do it. Invite to negotiate how the solution will be taken. People don't want to wait when the government doesn't act fast. A country's severed economy will only cause more outrage.

[n0ne]

The government kept its focus upon something specific and didn't think about the rest of the growth. This is the reason for the ongoing economic crisis. They were focused on creating an organic country, when there is some failure in production they should've shifted to the alternate plan. This concentration on one specific thing is the reason for such a crisis for basic needs of life.

[Ahli38]

Some months ago, I watched with a heavy heart a BBC report on the Sri Lankan economic crisis and I never thought it would get to this stage. I understand to a degree what is going on there and how Sri Lankans feel because I am currently living in a country with the same problems. Universities have been closed since the past 5-months, the prices of commodities are through the roof, the government a couple of days ago silently increased the price of petrol, the national grid collapsed a day ago, civil servants and pensioners are being held salaries for over 24 months, police brutality, increase in terrorism and kidnapping with support from some powerful people in the government and many more. One this is sure, we may not at this time have an uprising like the the Sri Lankans but the youths are determined to come out en mass and vote in  out the terrible people in government in the forthcoming general elections and ensure that the cabals don't put anyone of their puppets in Power. This is our form of uprising

I hope you and your family are always healthy and safe. in a deteriorating economic condition, the minds of those who are experiencing a crisis will become emotionally and psychologically unstable. Therefore, it is common in a country experiencing an economic crisis, namely an increase in the level of crime and violence. because everyone is forced by circumstances. so morality declines. so it's important to be able to take care of yourself and your family in a worsening economic crisis situation.

[irsada]

This is the result if the president as a leader cannot make wise decisions for the welfare of the people and only cares about himself.
I believe Sri Lanka will be much better after this very sad event, hopefully a strong leader will emerge and be able to advance the country.

[DrBeer]

I wonder why a lot of people are pinning this debt trap to China only when their lending only amounts to 10% of Sri Lanka's Foreign debt? Other sources claim that the figure is up to 26% if you add the amounts owed to Chinese banks. Regardless, this 'China debt trap' sounds more like a propaganda to hide the economic mismanagement of Sri Lankan leaders and paint China as evil (again).

Yeah right, propaganda...
That is the overall debt in the loans Sri Lanka has taken from various entities.

The debt trap refers to things like  projects that were constructed by Chinese companies that Sri Lanka never afforded at all, like the whole fiasco where after allowing the Chinese to extend the port of Hambantota for billions while the port was seeing only a few vessels per month, so in order to pay for the debt risen though the construction they had to lease it for free for 99 years to China, in Colombo they had to give them 40-year tax relief for another billion.
The international airport in Mattala, $190 million from a Chinese bank, the airport is no longer having any international routes aside from Abu Dabhi.

You will not see those billion in the graphic since it's not a state-issue bond or debt.

If I scam you with a scheme and you're forced to come up with 10 000 euros which you borrow from the bank, who is to blame for your debt, the bank which holds your debt or me, the one that caused your loss in the first place?

Great example and comments!
The essence of what you said, I hope it will reach the supporters of the fairy tale about the fact that China is "fighting the West" and "helping friends in this fight." China is a very cynical subject! He finds (no offense, but such is the reality) weak "friends", and under sweet speeches, offers them megaprojects. BUT:
- these projects are financed by China
- these projects are implemented in a significant part by China, or rather in the part where it is possible to generate the maximum added value. For example, the local population can also "carry bricks at a construction site" for a penny, but the development of project documentation for millions and hundreds of millions is done by the Chinese.
- as a rule, such objects have no economic value for the country that China has persuaded to such a project, and then China becomes the real owner for a penny, and for a period approximately equal to the design operational life of the object.
Eventually:
- China receives huge interest on loans
- In China, the population is busy with work, and work is expensive
- As a result, China receives the object of sale in its ownership, in fact, for free!

A good lesson for fans of "be friends with China against the West"!
It is China, and not the West, that will undress such countries and make them their slave, and it is guaranteed

[salad daging]

What do you think about the economic crisis in Sri Lanka?

I am very concerned about the current state of the economy in Sri Lanka, I just saw on private TV about the crisis and food shortages in Sri Lanka, many women who sell themselves only to buy food, milk, gas, medicine and so on, What's even worse is that government employees are laid off to do other activities, so they can earn money to eat.

I think especially the UN should address what happened in Sri Lanka, the initial steps and actions and the next step is food concern and assistance from other countries.

What happened in Sri Lanka, was really the worst and worst to the economy there.

Sri Lanka has got a new president Ranil Wickremesinghe in the parliamentary election getting the most votes from his competitor, although this is still a controversy because previously he was prime minister of president Gotabaya Rajapaksa, although many rejected the result but it was a legal decision and he will keep working to stabilize the country but for me it will take longer time and the country doesn't have any reserves.

It's true I just watched TV a lot of women there sell themselves to get their needs, maybe that way they can survive it because whatever they do or other work will not get results unless the road is steep.
This is the worst economy since they became independent in 1948.

I really care about the people there.

[Taskford]

This is the result if the president as a leader cannot make wise decisions for the welfare of the people and only cares about himself.
I believe Sri Lanka will be much better after this very sad event, hopefully a strong leader will emerge and be able to advance the country.

This is huge lesson needed to learn by their citizens and for their remaining officials since if they didn't get learning experience from this and continue to elec corrupt officials for sure this will happen to then again. But since the world is watching at their situation for sure there acting president will do all what they can do to revive back the economy of Sri Lanka.

[gabbie2010]

This is the result if the president as a leader cannot make wise decisions for the welfare of the people and only cares about himself.
I believe Sri Lanka will be much better after this very sad event, hopefully a strong leader will emerge and be able to advance the country.

Most of these corrupt leaders won't resign even if the country is facing severe economic hardship except being forcefully removed that was the situation with Sri Lanka, corruption is deep rooted in the country such that those leaders are unperturbed about the welfare of a common man, I believe this latest uprising in Sri Lanka will serve as a lesson to other corrupt leaders in other countries who are living in affluence at the mercy of their citizens, I forsee a similar revolution in those countries in the nearest future especially some African countries except they do needful to avert the calamity that might befall them.

[sovie]

This is the result if the president as a leader cannot make wise decisions for the welfare of the people and only cares about himself.
I believe Sri Lanka will be much better after this very sad event, hopefully a strong leader will emerge and be able to advance the country.

Most of these corrupt leaders won't resign even if the country is facing severe economic hardship except being forcefully removed that was the situation with Sri Lanka, corruption is deep rooted in the country such that those leaders are unperturbed about the welfare of a common man, I believe this latest uprising in Sri Lanka will serve as a lesson to other corrupt leaders in other countries who are living in affluence at the mercy of their citizens, I forsee a similar revolution in those countries in the nearest future especially some African countries except they do needful to avert the calamity that might befall them.

I believe Srilanka situation is not that bad the way we perceive - people are going there and enjoying their time in Sri Lanka.
However - people of Sri Lanka did rise and showed their anger against their government. Which is their right ...

[Smack That Ace]

There are several ways that the Sri Lankan government can do to rise from the economic crisis. one of them is by providing massive incentives in the form of reducing tax rates and also reducing interest rates. or also by means of fiscal expansion. although this method will run slowly however. can be very effective when done correctly and honestly.

Reducing interest rates, which they have done before. The previous president, Mr. Gotabaya Rajapaksa, in 2019 after taking office, also implemented a strong tax reduction policy to stimulate the economy, but this has affected the government's revenue by more than $ 2.7 billion.

This is not the solution for the Sri Lankan economy right now. What they need now is foreign currency to be able to buy essential items for life and restore production in this country. They will not be able to recover without foreign currency to import raw materials and food and medicine for the people.

[X-ray]

There are several ways that the Sri Lankan government can do to rise from the economic crisis. one of them is by providing massive incentives in the form of reducing tax rates and also reducing interest rates. or also by means of fiscal expansion. although this method will run slowly however. can be very effective when done correctly and honestly.

What they need now is foreign currency to be able to buy essential items for life and restore production in this country. They will not be able to recover without foreign currency to import raw materials and food and medicine for the people.

The problem is if that country can't recover without the help from IMF to give another loan. Everything already destroyed and that's the only way to help it. That needs another loan from IMF to be able to recover the damage. Everything is collapse. Even with the new president and that may not help a lot. Sri lanka didn't have enough foreign exchange reserves anymore to buy oil, grain and many more from another countries.

Without loan and that's almost an impossible thing to make sri lanka to recover.

[DrBeer]

There are several ways that the Sri Lankan government can do to rise from the economic crisis. one of them is by providing massive incentives in the form of reducing tax rates and also reducing interest rates. or also by means of fiscal expansion. although this method will run slowly however. can be very effective when done correctly and honestly.

What they need now is foreign currency to be able to buy essential items for life and restore production in this country. They will not be able to recover without foreign currency to import raw materials and food and medicine for the people.

The problem is if that country can't recover without the help from IMF to give another loan. Everything already destroyed and that's the only way to help it. That needs another loan from IMF to be able to recover the damage. Everything is collapse. Even with the new president and that may not help a lot. Sri lanka didn't have enough foreign exchange reserves anymore to buy oil, grain and many more from another countries.

Without loan and that's almost an impossible thing to make sri lanka to recover.

To avoid ambiguity, it must be clarified that loans from the IMF are not equal to a financial trap in the form of loans from China. China has already done such deals in other regions more than once. This is a policy of "creeping expansion", without violence, without murder, this is a cynical, beautifully designed theft, at the same time, in the process of which China is also paid money.
The VMFF is also not saints, but their goals are slightly different and not at all the same as those of China. Yes, it turns out "credit to credit is different", and ill-conceived or populist actions then for many decades disentangle the entire population of the country.
Objectively, the people of Sri Lanka are sorry, but it's good that they did not sit quietly, but showed their strength and sent an inadequate president "beyond the horizon". I really hope they manage to find an acceptable way out of the situation!

[sovie]

There are several ways that the Sri Lankan government can do to rise from the economic crisis. one of them is by providing massive incentives in the form of reducing tax rates and also reducing interest rates. or also by means of fiscal expansion. although this method will run slowly however. can be very effective when done correctly and honestly.

What they need now is foreign currency to be able to buy essential items for life and restore production in this country. They will not be able to recover without foreign currency to import raw materials and food and medicine for the people.

The problem is if that country can't recover without the help from IMF to give another loan. Everything already destroyed and that's the only way to help it. That needs another loan from IMF to be able to recover the damage. Everything is collapse. Even with the new president and that may not help a lot. Sri lanka didn't have enough foreign exchange reserves anymore to buy oil, grain and many more from another countries.

Without loan and that's almost an impossible thing to make sri lanka to recover.

The whole world is in chaos - - the covid was not gone when Afghan - US war took a drastic change and brought instability in the region. Then come Russian war
and Sri Lanka and Pakistan wanted to remain neutral - both the government have been toppled. Now Biden coming to Saudi for oil will result in increase in the price again. What is going on in the world.

[Vaskiy]

There are several ways that the Sri Lankan government can do to rise from the economic crisis. one of them is by providing massive incentives in the form of reducing tax rates and also reducing interest rates. or also by means of fiscal expansion. although this method will run slowly however. can be very effective when done correctly and honestly.

What they need now is foreign currency to be able to buy essential items for life and restore production in this country. They will not be able to recover without foreign currency to import raw materials and food and medicine for the people.

The problem is if that country can't recover without the help from IMF to give another loan. Everything already destroyed and that's the only way to help it. That needs another loan from IMF to be able to recover the damage. Everything is collapse. Even with the new president and that may not help a lot. Sri lanka didn't have enough foreign exchange reserves anymore to buy oil, grain and many more from another countries.

Without loan and that's almost an impossible thing to make sri lanka to recover.

The newly formed government need to work in a much faster way to tackle the prevailing situation which is at the worst. Sri Lanka to recover as the past will take decades. Even with loans it isn't possible, because right now the inflation have peaked along with the shortage of basic needs of life. One by one things can be retained, but when the focus is made over specific subject the other gets affected.