The situation in Sri Lanka, which is facing the biggest economic crisis in the country’s history, is getting worse with each passing day. People are getting violent on the streets, while on the other hand, political turmoil is also at its peak.
But in the midst of all this, the economic crisis in the island country is not taking its name. Now the new Prime Minister Ranil Wickremesinghe has taken big decisions like selling government airlines and printing new currency to get the country out of the current crisis.
Ranil Wickremesinghe’s waist:
It is worth noting that on Thursday itself, Ranil Wickremesinghe was appointed as the new Prime Minister of Sri Lanka. After this, he has taken such big decisions to revive the country which is facing a big economic crisis. A report said that a proposal has been made by Wickremesinghe to sell the state-run airline.
Apart from this, the government is also deciding to print new currency, because looking at the current situation, the government does not even have money to pay salaries to its employees.
People in need of essential goods:
In the last few months, the economic crisis in Sri Lanka has taken such a severe form that the people of the country started crying. The country’s foreign exchange reserves are almost exhausted, due to which Sri Lanka is not able to import even essential goods.
Significantly, the country imports most of its needs. It includes everything from medicine to oil. According to the report, the share of petroleum products in Sri Lanka’s total imports was 20 per cent in December last year.
But, due to the decrease in foreign exchange reserves, the government of Sri Lanka is failing to import essential items including fuel. Due to this, there is a shortage of essential commodities in the country and their prices are touching the sky day by day.
Inflation at a peak of 21.5%:
If we look at the inflation data in Sri Lanka released recently, it has reached a new high of 21.5 percent in March. Let us inform here that in the same period a year ago, ie March 2021, it was at 5.1 percent.
According to these figures released by the country’s Census and Statistics Department, food inflation in Sri Lanka has been hit hard and it has reached 29.5 percent in March. The situation is that petrol and diesel are not available and the prices of everyday things are becoming out of reach.
Meanwhile, the energy crisis has made people’s condition miserable. Now people here have to live without electricity for ten hours every day.
No-confidence motion against President dismissed:
The situation in Sri Lanka, which is facing inflation, has become so bad that people are continuously protesting. People are also losing their lives in the clash between these protesters and the police. The public is blaming President Gotabaya Rajapaksa for these situations that have arisen in the country and is demanding his resignation.
Meanwhile, let us tell you that the no-confidence motion moved by the opposition against President Gotabaya Rajapaksa in Parliament proved to be unsuccessful in Parliament on Tuesday. According to the report, 119 MPs voted against the motion, while only 68 MPs voted in favor of the motion, making the no-confidence motion unsuccessful. Meaning it will keep 72-year-old President Rajapaksa in his post.
Sri Lanka in the trap of heavy debt:
Let us tell here that the biggest reason for the worsening of the situation in the country is the huge debt on the country including China and other countries. In the midst of the economic crisis, the government had raised its hands in repaying this debt of $ 51 billion (Rs 3 lakh 88 thousand crore) in the past.
Talking about the conditions of the country, the energy crisis here has deepened so much that every day more than ten hours of power cut is being done. People also have to buy a bread packet for $ 0.75 (150) rupees. Not only this, the price of one kg of rice and sugar has reached Rs 290 per kg.
At present, people have to spend up to Rs 100 for a tea. The price of one kg of chillies went up to Rs 710, while the price of brinjal increased by 51 per cent, then the price of onion increased by 40 per cent. Had to pay up to Rs 200 for one kg of potatoes.
Biggest crisis after independence:
Significantly, these days Sri Lanka is facing the most severe economic crisis in history after independence from Britain in 1948. The main reason for this is the depleting foreign exchange reserves of the country. Looking at the current situation, the forex reserve is almost exhausted.
The country is also unable to import essential goods. This is the big reason for this huge economic crisis that has developed in Sri Lanka. The economy of the country has reached the verge of complete ruin and the situation does not seem to be improving. Now it will be interesting to see whether the decisions of the new Prime Minister Wickremesinghe will be successful in getting the country out of the crisis.
The post Sri Lanka Crisis: Efforts to revive the financially troubled Sri Lanka, from selling airlines to printing new currency appeared first on Spotlight 7.
source https://spotlight7.com/world/sri-lanka-crisis-efforts-to-revive-the-financially-troubled-sri-lanka-from-selling-airlines-to-printing-new-currency/
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