ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 19 April. Click Here for more information.
ForumIAS Answer Writing Focus Group (AWFG) for Mains 2024 commencing from 24th June 2024. The Entrance Test for the program will be held on 28th April 2024 at 9 AM. To know more about the program visit: https://forumias.com/blog/awfg2024
News: Sri Lanka’s energy minister has said the India-Lanka development of the strategic Trincomalee oil tank farm will be finalised in January.
What are the reasons for the recent economic crisis in Srilanka?
The Easter killings of 2019: it dealt a hammer blow to the country’s tourism industry, its main economic activity and source of revenue.
Dwindling foreign exchange earnings: it has led to restriction on imports, which in turn has led to shortages of food essentials.
High Retail inflation: it has led to skyrocketing of food prices.
An overnight switch to organic farming by government: it has threatened Sri Lanka’s main export, the paddy and tea.
High External debt. In 2022, the country reportedly had to pay some $4.5 bn to service its sovereign bonds. Nearly half of Sri Lanka’s external debt is owed to international capital markets, and slightly below a quarter to international banks.
Lack of support from IMF: Sri Lanka has exited the IMF programme in 2019 because of the tough conditions, and is reluctant to approach the Fund again.
How India is supporting Srilanka ? : Read here : https://forumias.com/blog/india-finalises-cooperation-plan-to-revive-covid-hit-sri-lanka-economy/
Source: This post is based on the article “Joint development of oil tank farm by India, Lanka could alter dynamic of Delhi-Beijing rivalry” published in Indian Express on 30th Dec 2021.
