Sri Lanka is going through its worst economic crisis ever .

Since the end of March people

have been taking to the streets in mass anti-government protests calling for the president
Gotabaya Rajapaksa to Resign . Last july sri lanka newly appointed prime ministerranil
wickeremesinghe admitted that the economy has completely collapse.

Sri lanka has been experiencing an ongoing economic crisis due to variety of factors:

1. Foreign debt

- According to dhananath fernando ( chief operating officer advocata)

Borrowed too much money since we went to markets about 12 yaers ago most of the money
that they borrowed are invested in non dollar revenue so after one point even to pay the
interest they have to borrow more money at a higher interest just to settle the interest.( eg
the government owed to IMF for imports and make unnecessary projects )
How did the crisis start
There were series of unfortunate events as well as mismanagement on the economic front . if
you go back to 2015 there was a central bank bomb scam which massively tarnished the
credibility of financial system and then in 2016 - 2017 there was a massive drought (use
organic fertilizer than chemical to save money resulted to crop failure and imports. Sri lanka
imported $3B bigger than exports yearly . in 2018 there was a political instability with the
constitutional coup in 2019 there was an easter attack in 2021 there was a covid sri fell to 41
billion economic crisis and the inlation continue to rose up

The government gave solution byCutting taxes and printing record amounts of money -
leading to inflation as of now the inflate rate of sri lanka rose to 50 percent already The
gfovernments is struggling to pay for essential import goods as well as pay for debt
People are facing the 13 hour daily power cuts Long lines of fuel Shortage of fuel , foods and
medicine .Rajapaksa last march has declared a state of emergency and banned social emdia
over the protest but that hasnt stopped people from taking to the streets to demonstrate their
future

Covid 19 pandemic ( which ravaged the tourism industry)

Theres a lot of complication of covid that make srilank fell in economic crisis and this is
because of tourism industry Tourism boosts the revenue of the economy, creates thousands of
jobs, develops the infrastructures of a country, but when the covid strikes it has impact with
economies, livelihoods, public services and opportunities on all continents.
 Russia invasion to ukraine
We cannot agree that theres a normal stability thats going on in our stock market , government
in the entire world .Last july the sri lankan government run out of fuel that only essential
services such as ambulances or buses will be allowed to buy fuel . while everybody else” No”
The drastic measure is a desperate attempt by the government to save up fuel .
Since march 12 people have died at fuel lines out of exhaution and illnesses
While some fuel stations have seen bouts of violence. As we all know russia have been an
exporter of fuel around the world and due to the invasion of russia in ukraine it effects the fuel
distribution in evry country resulting to price hikes of fuels. It also afects how the massive rose
up of inflation in srilanka because ukraine also supplies semiconductor and its a nothey way
that our supply chain getting to be affected .they put a pressure on food market tat leads also to
major price increase and shortage of food due to high price

solution
Strong reform package when we go IMF and to prove that they are willing to restructure
economy because they havent ben competitive . tehy a lot of protectionism going on our
industries are not competitive and at the same time our financial institutes like the central
banks indpendent have been question for sometime and at the same time their government
sector is quite heavy because they have 1.5 million government sectors workers which is too
much for the country of 82 billion economy We have to be reformed focus because without solid
reform there is no way out from this crisis , on( the monetary side , fiscal side , labor capital
markets and industrie s and that the way to come out with this crisis

- Competition

Solid reform plan

1. ncrease in agricultural productivity: the sri lanka is he country is known for

its vast plains and impressive mountain tops, tea plantations, and beautiful
temples the government should invest more for good fertilizers crops ,
 land irrigation facilities and agricultural education in that way it is a big
step up for teh country to be competitive or productivew elath and greater
return of investments
investing in making fertilizers environmentally sustainable, or at least less
damaging.

2.

Expand tourism and the government to invest foreign aid in developing

and expanding tourism.
Teh main economic sectors of the country are tourism i think kailangan nialng
amaksabay sa ibang bansa by using teh things that they are known for but in a
innovative way using their culture, gastronomy, infrastructure that highlights
there culture and also a landscape These features attract people to the
destination and contribute to the overall experience of the trip.

Taxation
Tax always has an impact on the economy both good and bad. Moderation in everything is
good such as food, sleep, exercise, and taxes. Lower Corporate taxes almost always creates
more jobs because it is cost effective but if taxes are lowered too much, things like
infrastructure and services start to fall. Moderation is the key. Tax This includes financing
government and public projects as well as making the business environment in
the country conducive for economic growth.

Government should support local entrepreneurs

By supporting local farmers, people will not only save money within the community and
improve the economy in the area, but they will also get better quality products at lower
prices, which will also help with environmental problems and more