: A former economist at Sri Lanka’s central bank explains why the country went from boom to bust #IndiaNEWS An unprecedented economic crisis is unfolding in Sri Lanka. And while the country’s problems

A former economist at Sri Lanka’s central bank explains why the country went from boom to bust #IndiaNEWS
An unprecedented economic crisis is unfolding in Sri Lanka. And while the country’s problems have been brewing for years, spillovers from the crisis in Ukraine have sent the island nation over the edge.The Sri Lankan rupee has plunged to a record low against the US dollar. Annual inflation is in the double digits. Import controls are in effect. And the country is teetering on the edge of default.As a result, power blackouts are routine. Fuel, food and medicine – most of which are imported – are scarce, and rising prices are putting what remains out of reach for many Sri Lankans. Even printing paper is hard to come by, forcing schools to cancel exams. The problems have sparked the biggest protests seen here in years. Troops have been sent in to quell them.Sri Lanka is now turning to foreign assistance for help, including its two biggest trading partners. China is considering offering .5 billion more over the .8 billion already extended and India has put up .4 billion. And President Gotabaya Rajapaksa’s government is currently in negotiations with the International Monetary Fund and the World Bank for a bigger aid package – something he had previously resisted, to avoid the often onerous terms they require.As an economist and former official at the Central Bank of Sri Lanka, I saw firsthand many of the policies that led to the current crisis. And now the economic, financial and political stability...Read more

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