Aug 03, 2022
In Welcome to the Forum
People are outraged that the cost of living has skyrocketed to unaffordable levels. Food prices in Sri Lanka started rising at the end of 2021 and people are now paying 50% more for food than a year ago. Many people find it difficult to guarantee three meals a day. In addition, fuel shortages in Sri Lanka, power shortages and widespread power outages; a shortage of medicines has put the medical system on the verge of collapse. Essential services such as buses, trains job email list and medical vehicles have come to a standstill in Sri Lanka due to a lack of fuel, which is compounded by the fact that the government does not have enough foreign currency to import fuel. Petrol and diesel prices in Sri Lanka have risen sharply since the start of the year due to a lack of fuel. In late June, the government ordered a two-week ban on the sale of petrol and diesel to non-essential vehicles. It is believed to be the first country in the world to have such a ban since the 1970s. To date, Sri Lanka still has many restrictions on the sale of fuel. Fuel shortages have shut schools and people are being asked to work from home to help save energy. 2. Why is Sri Lanka in deep economic crisis? Sri Lanka's foreign exchange reserves are effectively depleted, but it is so reliant on imports that it has reached the point where it cannot afford to pay for staples and fuel. The government blamed the COVID-19 (Severe Special Infectious Pneumonia, New Coronary Pneumonia, Wuhan Pneumonia) epidemic, saying the epidemic has largely killed the tourism industry, one of Sri Lanka's largest sources of foreign exchange earnings. The government also said that a series of bomb attacks on churches three years ago also discouraged tourists from Sri Lanka. However, many experts believe that economic mismanagement is the main cause. When Sri Lanka's civil war ended in 2009, the government chose to focus on developing the domestic market rather than exporting to foreign markets. As a result, export earnings remain low, while import spending continues to grow. Today, Sri Lanka has an annual trade deficit of US$3 billion. The government has also borrowed huge amounts of debt from countries, including China, to fund some infrastructure projects that critics say are unnecessary. "AFP" reported that the new international airport without traffic follow-up, the idle conference center and the deep-water port handed over to Chinese companies, these huge investments have increased Sri Lanka's foreign debt, of which at least 10% came from Beijing's contract.