The keys to the crisis in Sri Lanka and why it may be a warning to the rest of the world

Sri Lanka It is currently experiencing its worst economic crisis since its independence in 1948. The shortcomings in economic matters led to massive demonstrations and a deep political crisis that broke out yesterday with the resignation of the prime minister. However, that of the Asian country may not be an isolated case.

The main factor of the economic crisis is the lack of foreign exchange. The coronavirus pandemic paused tourism in the island country and, with it, the income of dollars. Also, remittances from Sri Lankans living abroad stopped arriving. As reported by The Guardian, Sri Lanka it only has $50 million in reserves.

Protest in April over food prices in Sri Lanka.

As if this wasn’t enough, foreign debt of Sri Lanka reaches 51 billion dollars. Of course, you can’t afford it. For this reason, in April he suspended debt payments and decreed a moratorium.

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