Sri Lanka faces worst-ever economic crisis, triggering food and fuel shortages and protests

Sri Lanka's economic plight was worsened by a fall in tourism due to the pandemicSri Lanka's deep-rooted economic crisis has remained unaddressed for decades by successive governments.

Instead of addressing the issue head on it took the easier route in borrowing to tide over problems and now has mounting debt and interest payments of almost $12 billion.Tourism generates more than $4 billion a year, but the industry was hit hard by theThe Rajapaksa government's reckless and mismanaged economic policies has exaggerated the crisis and has been blamed for the mess the country is in.

Tax cuts, severe import restrictions and the reluctance to bring in prudent economic reforms laid bare the structural deficiency in the government's economic policy. With a severe balance of payment crisis, international agencies downgraded the country, further hampering any chances of foreign investment.The country is in a 'debt trap'The government has sought a credit line of $1.5 billion from India to import essentials. This amount is in addition to the $1 billion extended by India last month.

But for the moment, it's ordinary Sri Lankans who will have to bear the brunt of skyrocketing prices and shortages of essential products for a long time to come.

Then they need to stop comparing their currency to the USD

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