FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

Latest topics

» THE NEXT OPPORTUNITY - GET IN
by morphy360 Today at 10:11 am

» LOLC FINANCE PLC (LOFC.N0000)
by Surajmp Today at 10:03 am

» UNION BANK - Ownership change requires approval
by God Father Yesterday at 5:51 pm

» PEOPLE'S INSURANCE PLC (PINS.N0000)
by K.R Yesterday at 4:21 pm

» PMB/PLC/PINS
by K.R Yesterday at 4:19 pm

» Focus on Government controlled entities
by K.R Yesterday at 8:06 am

» Sri Lanka cleared to borrow cheaper IDA funds by World Bank
by K.R Tue Dec 06, 2022 10:14 am

» PLR (Prime Lands) Next Value counter.. Fair Value Rs 20
by Anushka Perz Tue Dec 06, 2022 12:19 am

» NESTLE LANKA PLC (NEST.N0000)
by Anushka Perz Tue Dec 06, 2022 12:15 am

» What will happen tomorrow?
by ErangaDS Mon Dec 05, 2022 9:12 am

» Paris Club proposes 10-year moratorium on Sri Lanka debt, 15 years of debt restructuring
by K.R Sun Dec 04, 2022 11:27 pm

» Banking Sector Faces Tight Liquidity
by DeepFreakingValue Sat Dec 03, 2022 4:15 pm

» Sri Lanka: Exchange Rate Movement
by DeepFreakingValue Sat Dec 03, 2022 3:46 pm

» Fitch downgrades Sri Lanka’s rating further
by CHRONICLE™ Sat Dec 03, 2022 9:12 am

» Sri Lanka bond yields extend fall on DDR comments
by K.R Fri Dec 02, 2022 7:11 pm

» Sri Lanka banks may need more regulatory, accounting forbearance
by CHRONICLE™ Fri Dec 02, 2022 2:05 pm

» Banking Sector Vulnerability to Domestic Debt Restructuring
by God Father Fri Dec 02, 2022 9:29 am

» Palm Oil is going up again
by ErangaDS Thu Dec 01, 2022 3:09 pm

» The rupee was now ‘heavily undervalued’ based on fundamentals - Central Bank Governor Nandalal Weerasinghe
by K.R Thu Dec 01, 2022 8:58 am

» Shares to Sell
by Tax Wed Nov 30, 2022 5:36 pm

LISTED COMPANIES

Submit Post


ADVERTS

Poll

EXCHANGE RATE PREDICTION: 2022

How Sri Lanka's economy tanked: A simple explainer Vote_lcap16%How Sri Lanka's economy tanked: A simple explainer Vote_rcap 16% [ 43 ]
How Sri Lanka's economy tanked: A simple explainer Vote_lcap21%How Sri Lanka's economy tanked: A simple explainer Vote_rcap 21% [ 58 ]
How Sri Lanka's economy tanked: A simple explainer Vote_lcap30%How Sri Lanka's economy tanked: A simple explainer Vote_rcap 30% [ 83 ]
How Sri Lanka's economy tanked: A simple explainer Vote_lcap34%How Sri Lanka's economy tanked: A simple explainer Vote_rcap 34% [ 93 ]

Total Votes : 277

ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

MARKET CHAT


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » How Sri Lanka's economy tanked: A simple explainer

How Sri Lanka's economy tanked: A simple explainer

Go down  Message [Page 1 of 1]

CHRONICLE™

CHRONICLE™
Admin

1/7
​Worst economic crisis

Sri Lanka is suffering its worst economic crisis since its independence from Britain in 1948. Here, AFP reviews the origins of the snowballing economic calamity
Reuters

2/7
​White elephants

Sri Lanka has spent big on questionable infrastructure projects backed by Chinese loans that added to its already unsustainable debt. The projects were pushed by the Rajapaksa family, who have dominated Sri Lanka's politics for much of the past two decades.

3/7
​Unsustainable tax cuts

When Mahinda Rajapaksa returned to power in 2019, he unveiled the biggest tax cuts in Sri Lanka's history. This further worsened chronic budget deficits. Ratings agencies soon downgraded the country out of concern that the public debt was spiraling out of control. And it became harder for the government to secure new loans.

4/7
​Pandemic lockdown

A few months after the tax cuts, lockdowns due to Covid happened. International tourist arrivals dropped to zero. Remittances from Sri Lankans working abroad dried up. The administration then started using its foreign exchange reserves to make loan repayments.

5/7
​Fertiliser ban

With foreign reserves dwindling fast, authorities banned several imports in 2021, including fertiliser and agricultural chemicals. About a third of the country's agricultural fields were left fallow by farmers. It hit the production of tea, a vital export earner.

6/7
Shortage of food and fuel

When reserves had shrunk by late 2021, traders began struggling to source foreign currency to buy imported goods. Rice, lentils, sugar and milk powder began disappearing from shelves, forcing supermarkets to ration them. Then gas stations started running out of petrol and kerosene.

7/7
​Debt and default

In April, Sri Lanka announced it would default on its $51 billion foreign debt to save money for essential imports. The move failed to shore up Sri Lanka's deteriorating finances. The country is now in negotiations for an International

https://economictimes.indiatimes.com/news/international/world-news/how-sri-lankas-economy-tanked-a-simple-explainer/worst-economic-crisis/slideshow/91517491.cms

https://www.srilankachronicle.com

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum