Sri Lanka Economic Crisis

Sri Lanka’s frugality was in trouble indeed before the Covid epi- demic struck. The lockdowns further added to its straits and im- pacted the informal sector hard, which accounts for nearly 60 per cent of the country’s pool. The country’s foreign exchange reserves have fallen 70 per cent in the once two times to about 2.31 billion, leaving it floundering to pay for essential significances, including food and energy. The fiscal extremity also stemmed from a critical shortfallin foreign currency, leaving dealers unfit to finance signif- icances. Tourism, one of the crucial source of foreign exchangefor the country, was poorly hit due to the Covid epidemic. either, remit- tances from Sri Lankans working overseas also declined sprucely. The country is left with foreign reserves of only around 2.31 billion as of February, indeed as it faces debt payments of about 4 billion through the rest of the time. 3