Sri Lanka Facing its Worst Financial Crisis

The island nation of Sri Lanka has been facing an economic upheaval since the last couple of weeks making life difficult for residents.

• Sri Lanka is in the middle of a financial crisis for weeks with no solution in sight other than taking on more debt. Sri Lankan President Gotabaya Rajapaksa is being held responsible.
• The island nation is witnessing some of the largest protests ever seen in its history, with chants of “Go Home, Gota,” calling for the resignation of President Rajapaksa.
• Fuel shortages, rising inflation, power cuts lasting over 10 hours have become a regular feature since the crisis unfolded. Life has become difficult for Sri Lankans from all walks of life.
• While the government blames the Covid19 lockdowns hitting tourism as a major reason for this crisis, experts say that the Rajapaksa government’s economic mismanagement began much earlier.
• The President refused to back down and in order to curb the protests announced draconian emergency laws and banned social media. But these had to be revoked as the protests didn’t stop.
• While India and China have offered help, analysts also blame China’s debt-trap diplomacy for bringing about this economic crisis. For India, a geopolitical opportunity beckons.