Sri Lanka’s Economic Crisis: Key Facts

Sri Lanka is facing its worst economic crisis since its independence.

May 01, 2022
  • Sri Lanka is facing its worst economic crisis since its independence. Shortages of fuel, food, medicines and other basic amenities, as well as power outages, have paralysed the country.
  • Sri Lanka has become a twin deficits economy, which means the country’s imports are greater than its exports and the national expenditure exceeds the national income.
  • Sri Lanka has a massive foreign debt of around $5 billion. It is dependent on imports for most essential items like sugar, cereals and pulses. But the country is deficient in foreign reserves and has no money to pay for its import bills.
  • Tourism, which accounts for over 10% of the island nation’s gross domestic product (GDP), was adversely affected due to the COVID-19 pandemic.
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