Sovereign Debt Crisis in

in Sri Lanka: Anatomy and

and Policy Options
Explore the complexities of Sri Lanka's sovereign debt crisis, its impact
on the nation's growth, and policy options for a sustainable future.

HA by Hamdi Ashazli
Background on Sri Lanka
Learn about the rich cultural heritage and natural beauty of Sri Lanka, known for its stunning
landscapes, diverse wildlife, and ancient temples.
Sovereign Debt Crisis in Sri
Lanka
Unravel the origins and consequences of Sri Lanka's sovereign debt
crisis, examining its implications on the economy and financial
stability.
Three-decade Secessionist War
Dive into the historical context of Sri Lanka's three-decade secessionist war, including the conflict
between the Liberation Tigers of Tamil Eelam and the government security forces.
Debt-driven Growth and
Vulnerability
Explore the relationship between debt-driven growth and vulnerability,
understanding how Sri Lanka's reliance on debt exposed it to shocks,
such as the COVID-19 pandemic.
Impact of Debt on Sri Lanka's
Growth
Analyze the impact of debt on Sri Lanka's economic growth, examining
key indicators and exploring the long-term consequences for the
nation's development.
Vulnerability, Debt Crisis, and COVID-19
Shock
Examine how Sri Lanka's vulnerability to the debt crisis was exacerbated by the global COVID-19
shock, highlighting the challenges faced by the nation.
Debt Distress in Sri Lanka
Delve into the intricacies of Sri Lanka's debt distress, exploring the key
factors contributing to the country's financial challenges and potential
consequences.
Analysis of Debt Distress
Debt-to-GDP Ratio
Examine the debt-to-GDP ratio and
its significance in assessing Sri
Lanka's fiscal health, shedding light
on the country's debt sustainability.
1 Debt Statistics
Uncover the latest data on Sri
Lanka's debt, including the
2 composition of public external debt
and arrears, providing valuable
insights into the nation's financial
situation.
3 Economic Consequences
Explore the economic consequences
of debt distress in Sri Lanka,
discussing its effects on inflation,
exchange rates, and investment.
Data Sources and Methodology
Gain an understanding of the data sources and methodology used in
this study, relying on comprehensive data from the Central Bank of Sri
Lanka and the GDP disaggregation methodology of Goldstein and
Officer.
Concluding Remarks
Wrap up the presentation with insightful concluding remarks,
summarizing the key findings and reflecting on the implications for Sri
Lanka's future economic stability.
Conclusion and Policy Options
Present actionable policy options to address Sri Lanka's sovereign
debt crisis, highlighting strategies for sustainable growth, financial
resilience, and economic recovery.