The country is in an economic crisis, people come out to protest. There is a shortage of medicines, food, energy resources in the country. I wonder what will happen to the government? What should the government do to fix the situation? How can this government work if it has made bad living conditions for people. Maybe someone can help this country...
China puts this country into a big debt, and the Sri Lanka government bite the trap, and this is the result already. I don’t think they will rise again in a short period of time so people in Sri Lanka should bare this crisis for more years and look for a better alternative as much as possible to live their daily needs. The government of Sri Lanka should start thinking for a better economic strategy, keep the good supply of basic necessities and calm their people, have a good propaganda and slowly they can recover. 
Topic: Sri Lanka defaults on its $51 billion external debt (Read 566 times)
The country is in an economic crisis, people come out to protest. There is a shortage of medicines, food, energy resources in the country. I wonder what will happen to the government? What should the government do to fix the situation? How can this government work if it has made bad living conditions for people. Maybe someone can help this country...
disagree about tourism. say on antigua people are poor too and have been. it has 100k population and had 1m /y tourists. Where sri lanka has 22m with 2.3m/y . it solves nothing anyway
Whether you agree with me or not that's true if you will check 2018 economic growth chart, where Sri Lanka earned over 4 billion usd from tourism sector which is near 6% in their GDB but it’s dropped below 1% after 2019 when covid started and lockdown. So, Sri Lanka earned a significant amount of money from their tourism industry it’s definitely a big contribution in their GDP.
disagree about tourism. say on antigua people are poor too and have been. it has 100k population and had 1m /y tourists. Where sri lanka has 22m with 2.3m/y . it solves nothing anyway
The sad thing to see the current rare condition of Sri, from a lot of news on TV and Social Media shows very high unemployment, the first thing Sri Lanka must improve is to improve the education system so that the people can be productive and of course reduce imports that are very burdens on the country.
You know Sri Lanka literacy rate over 90% still now, so there are no fault with education system. Mainly a few reason for this situation as like they're trapped in excessive foreign debt, Many mega projects have been built but the government has not benefited from them so now it's not possible to repay the foreign loans. Then Sri Lanka mainly depend on their tourism sector which is affected by Covid19. ...
Countries that can't sustain a diversified income with a bit of savings or future debt can't sustain and vulnerable. Look at the USA, they are in big debt, and they do not have easy time paying that neither, each year they are growing that, why are they not worried or not defaulting? Because, they are spending that money to earn more in the future, the 500 billion debt you make today, could mean 50 billion a year in the future, the 2 trillion you spent could comeback as 300 billion a year.So, basically it is a situation where Sri Lanka could have relied heavily on manufacture and still would bankrupt, or farming and still bankrupt, you need to invest into multiple different sources of income or you will do badly.
it is obvious that the US is able to manage debt into profit every year, that is their advantage but in contrast to sri lanka, their country has debt and also a high number of corruptors which makes the function of the debt bad. just see what will happen to sri lanka when they manage to get loan funds from the IMF and world bank, whether they will be able to manage the debt!!
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Countries that can't sustain a diversified income with a bit of savings or future debt can't sustain and vulnerable. Look at the USA, they are in big debt, and they do not have easy time paying that neither, each year they are growing that, why are they not worried or not defaulting? Because, they are spending that money to earn more in the future, the 500 billion debt you make today, could mean 50 billion a year in the future, the 2 trillion you spent could comeback as 300 billion a year.So, basically it is a situation where Sri Lanka could have relied heavily on manufacture and still would bankrupt, or farming and still bankrupt, you need to invest into multiple different sources of income or you will do badly.
it is obvious that the US is able to manage debt into profit every year, that is their advantage but in contrast to sri lanka, their country has debt and also a high number of corruptors which makes the function of the debt bad. just see what will happen to sri lanka when they manage to get loan funds from the IMF and world bank, whether they will be able to manage the debt!!
Of course the sad thing is to see the financial condition of Sri Lanka, inflation is very high in the value of imports to increase while exports are very small so that the Sri Lanka economy is very dependent on debt, the first thing to do is increase local production, especially agriculture which currently has a strong position.
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Yes, it's sad that this happened to some countries but let's be honest here. The whole system of the Central Bank, politics, and education is a scam and even since the Covid-19 breakout a lot of people have already known that our Central Bank have failed us and the result of their failure is what we see that reflect in the country like Sri Lanka and Lebanon.
Policies taken by the banking system and the political system are the majority of the reason for these kind of huge debts, i am not personally not aware of the political situation in Sri Lanka but this was news headline all over the world and they are blaming the entire situation on the untimely pandemic, what they are trying to hide is the fact that they were already in trouble well before the pandemic and the pandemic might have fast tracked their position.Yes, it's sad that this happened to some countries but let's be honest here. The whole system of the Central Bank, politics, and education is a scam and even since the Covid-19 breakout a lot of people have already known that our Central Bank have failed us and the result of their failure is what we see that reflect in the country like Sri Lanka and Lebanon.
That isn't as simple as you think. Their country is reeling from debts at the moment which implies that they don't really have time to focus on improving their education system.
They can't import anything, because their forex reserves have gone dry. Citizens are queueing for gasoline and cooking gas, and supermarket shelves are also empty. And here in India, there are reports of refugees arriving in the Southern State of Tamil Nadu by boat from Sri Lanka (some 15% of the Sri Lankan population is Tamil, and they have cultural connections to Tamil Nadu). Here we feel just lucky, because almost all of our neighbors are going through economic crisis (Sri Lanka, Nepal, Pakistan.etc).
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Notice this thread just now. I watched the news about Sri Lanka a few days back on your native TV news. I realized the main reason for bankruptcy is corruption there. Government peoples fill their pocket by corruption behind so-called development in their country. That's the reason why a lot of development becomes worthless and default loans. If the government servants become corrupted then this is the result expected. I can't see any other valid reason bankruptcy of Sri Lanka at all. It will be hard for them to overcome this situation due to wrong decisions by the government.
Yes, it's 100% true,
People can blame Covid 19 only, It's also true that Covid 19 has claimed the lives of millions of people and crippled the economies of the countries. Inflation has now become a daily occurrence in countries.
The prices of basic necessities have gone up so much that they are almost out of reach of the common man. Even stable countries like USA also have been facing the problem of inflation since covid. Most of them like china, India, and other below-average countries are recovered now cause they are less corrupted than Sri Lanka.
However, most of the time behind these problems lies the corruption and opacity of the government and its other officials. And that's what happened recently with Sri Lanka.
due to covid-19 many Asian countries are in debt, including my own country. But unfortunately under this crisis there are some unscrupulous government officials who take the opportunity to commit corruption, especially Sri Lanka, where most of the government apparatus are mostly people in the kingdom.
Unscrupulous government officials were present in Sri Lanka way before the pandemic just like any other country out there to be honest. Recent corrupt officials though were some of the worst among the worst which screwed the country in several ways.Russian war with Ukraine just accelerated their economic collapse which some of the posters above pointed out.
The sad thing to see the current rare condition of Sri, from a lot of news on TV and Social Media shows very high unemployment, the first thing Sri Lanka must improve is to improve the education system so that the people can be productive and of course reduce imports that are very burdens on the country.
That isn't as simple as you think. Their country is reeling from debts at the moment which implies that they don't really have time to focus on improving their education system. 
The sad thing to see the current rare condition of Sri, from a lot of news on TV and Social Media shows very high unemployment, the first thing Sri Lanka must improve is to improve the education system so that the people can be productive and of course reduce imports that are very burdens on the country.
~
Yes, it's sad that this happened to some countries but let's be honest here. The whole system of the Central Bank, politics, and education is a scam and even since the Covid-19 breakout a lot of people have already known that our Central Bank have failed us and the result of their failure is what we see that reflect in the country like Sri Lanka and Lebanon.
Policies taken by the banking system and the political system are the majority of the reason for these kind of huge debts, i am not personally not aware of the political situation in Sri Lanka but this was news headline all over the world and they are blaming the entire situation on the untimely pandemic, what they are trying to hide is the fact that they were already in trouble well before the pandemic and the pandemic might have fast tracked their position. Yes, it's sad that this happened to some countries but let's be honest here. The whole system of the Central Bank, politics, and education is a scam and even since the Covid-19 breakout a lot of people have already known that our Central Bank have failed us and the result of their failure is what we see that reflect in the country like Sri Lanka and Lebanon.
Countries that only rely on income from tourists are very vulnerable to bankruptcy...
I agree that the phenomenon that is happening in Sri Lanka is the result of "mismanagement" by their government. they can't afford to pay debts and interest on debt from china, the biggest income only comes from tourism and the sizeable corruption is a fatal mistake from the sri lanka government. It will take a long time for Sri Lanka's economy to recover.
Countries that can't sustain a diversified income with a bit of savings or future debt can't sustain and vulnerable. Look at the USA, they are in big debt, and they do not have easy time paying that neither, each year they are growing that, why are they not worried or not defaulting? Because, they are spending that money to earn more in the future, the 500 billion debt you make today, could mean 50 billion a year in the future, the 2 trillion you spent could comeback as 300 billion a year.I agree that the phenomenon that is happening in Sri Lanka is the result of "mismanagement" by their government. they can't afford to pay debts and interest on debt from china, the biggest income only comes from tourism and the sizeable corruption is a fatal mistake from the sri lanka government. It will take a long time for Sri Lanka's economy to recover.
So, basically it is a situation where Sri Lanka could have relied heavily on manufacture and still would bankrupt, or farming and still bankrupt, you need to invest into multiple different sources of income or you will do badly.
due to covid-19 many Asian countries are in debt, including my own country. But unfortunately under this crisis there are some unscrupulous government officials who take the opportunity to commit corruption, especially Sri Lanka, where most of the government apparatus are mostly people in the kingdom.
but at this time the tourism sector has started to receive tourists from abroad which might change the economy there for the next year
but at this time the tourism sector has started to receive tourists from abroad which might change the economy there for the next year
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It is sad to see that Sri Rare's economy is heavily dependent on debt and is now failing to pay its debts. The thing that must be improved is the production and expansion of natural resources to the maximum in order to make Sri Rare's economy better in the future.
Yes, it's sad that this happened to some countries but let's be honest here. The whole system of the Central Bank, politics, and education is a scam and even since the Covid-19 breakout a lot of people have already known that our Central Bank have failed us and the result of their failure is what we see that reflect in the country like Sri Lanka and Lebanon. It is sad to see that Sri Rare's economy is heavily dependent on debt and is now failing to pay its debts. The thing that must be improved is the production and expansion of natural resources to the maximum in order to make Sri Rare's economy better in the future.
Sri Lankan economy is dependent on tourism and the pandemic situation played a part of their increasing debt, but the majority of the current situation should be blamed upon the Rajapaksa family who is ruling the country for an extended period of time and their economic blunders took the country to this position and they have to take the full responsibility. The only solution is that the creditors should give Sri Lanka ample to restructure the loan for them to repay the loan and only then they can overcome this situation even though it is a really difficult task.
There are many reasons behind the bankruptcy of Sri Lanka. All we know, Sri Lankan economy mostly depends on Tourism industry. Because of COVID-19, their Tourism industry is totally off. At this time, they loss huge amount. Another hand, the government of Sri Lanka take a lots of Developmental workWith foreign debt. At this moment they didn't give Debt settlement.
Unfortunately, I did not find up-to-date data - tell me, where can I see the structure of budget-forming industries in Sri Lanka, in recent years before Covid-19? Tourism - I agree that an important direction, but I vacationed in Sri Lanka from the beginning of 2000 to about 2014, and watched how the tourism industry developed. I have the opinion that it is, of course, not in its infancy, but it is difficult to call it gigantic, such as in Turkey or Thailand.
Notice this thread just now. I watched the news about Sri Lanka a few days back on your native TV news. I realized the main reason for bankruptcy is corruption there. Government peoples fill their pocket by corruption behind so-called development in their country. That's the reason why a lot of development becomes worthless and default loans. If the government servants become corrupted then this is the result expected. I can't see any other valid reason bankruptcy of Sri Lanka at all. It will be hard for them to overcome this situation due to wrong decisions by the government.
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