Featured image of post ‘There is no money left’: Covid crisis leaves Sri Lanka on brink of bankruptcy

‘There is no money left’: Covid crisis leaves Sri Lanka on brink of bankruptcy

Half a million people have sunk into poverty since the pandemic struck, with rising costs forcing many to cut back on food

Half a million people have sunk into poverty since the pandemic struck, with rising costs forcing many to cut back on food

Summary

  • Sri Lanka is facing a deepening financial and humanitarian crisis with fears it could go bankrupt in 2022 as inflation rises to record levels, food prices rocket and its coffers run dry.
  • One of the most pressing problems for Sri Lanka is its huge foreign debt burden.
  • “When the economic crisis deepens beyond redemption, it is inevitable that the country will have a financial crisis too,” he said.
  • At that point, it will be a humanitarian crisis.”One of the most pressing problems for Sri Lanka is its huge foreign debt burden, in particular to China.
  • Many fearing a loss decided not to cultivate crops at all, adding to the food shortages in Sri Lanka.