Sri Lankan Economic Crisis: An Analysis
Source: The Times of India Sri Lanka: An Overview Sri Lanka is a developing country in South Asia. It is a densely populated with majority of its people living in rural areas and dependent on agriculture. Being one of the world’s most scenic countries, Sri Lanka is highly dependent on tourism for its revenue. Though the country achieved a 6.4% growth from 2003 to 2012, the growth had been driven by non-trade sectors. It was given the status of upper middle-income country. However, in 2021, it was reclassified as a lower middle-income nation. In 2022, the economy shrank by 7.8%, and the proportion of people living on less than $3.65 a day more than doubled to roughly 25% of the total. The IMF gave the nation a $3 billion USD loan on March 20, 2023, as part of a 48-month debt relief program. Macroeconomic iss...
