{"id":175298,"date":"2022-03-22T20:23:32","date_gmt":"2022-03-22T14:53:32","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=175298"},"modified":"2022-03-22T20:25:27","modified_gmt":"2022-03-22T14:55:27","slug":"sri-lankas-aggravating-economic-crisis","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/sri-lankas-aggravating-economic-crisis\/","title":{"rendered":"Sri Lanka\u2019s aggravating economic crisis"},"content":{"rendered":"
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News<\/strong>: Sri Lanka\u2019s economic crisis is aggravating rapidly, putting citizens through enormous hardship. Sri Lanka’s Consumer Price inflation is at 16.8%, and it must repay foreign debt totalling nearly $7 billion this year.<\/p>\n

Reason for the crisis<\/h5>\n

Ever since the start of the pandemic, 1)<\/strong> Sri Lankan labourers in West Asian countries were left stranded and returned jobless, 2) <\/strong>Garment factories and tea estates were shut and youths lost their jobs in cities. This hit all key foreign exchange earning sectors<\/strong>, such as exports, remittances and tourism, in Sri Lanka.<\/p>\n

3) Lack of a comprehensive strategy<\/strong>: This includes decisions such as an abrupt shift to organic farming, harsh import restrictions that led to market irregularities and hoarding.<\/p>\n\n\n\n
Must read: <\/strong>Sri Lanka\u2019s economic crisis: Challenges for India \u2013 Explained, pointwise<\/strong><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
How India is helping to avert the Sri Lankan economic crisis?<\/h5>\n

Beginning January 2022, India has extended assistance totalling $2.4 billion \u2014 including an $400 million RBI currency swap, a $500 million loan deferment, and credit lines for importing essential commodities such as food, fuel, and medicines.<\/p>\n

What are the concerns raised with India’s assistance?<\/h5>\n

A Sri Lankan media depicted India’s emergency financial assistance as \u201cdiplomatic blackmail\u201d for crucial energy projects. There is a suspicion in Sri Lanka that India’s assistance in the past was \u201ctied\u201d with key infrastructure projects. Such as Trincomalee Oil Tank Farm project<\/a>; the National Thermal Power Corporation\u2019s recent agreement with Ceylon Electricity Board to set up a solar power plant in Sampur and two renewable energy projects in northern Sri Lanka.<\/p>\n\n\n\n
Read more: <\/strong>India-Sri Lanka Maritime dispute \u2013 Explained<\/strong><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source<\/span><\/b>: The post is based on an article \u201cSri Lanka\u2019s aggravating economic crisis\u201d<\/strong> published in The Hindu<\/strong>\u00a0on 22<\/strong><\/span>nd March 2022.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

News: Sri Lanka\u2019s economic crisis is aggravating rapidly, putting citizens through enormous hardship. Sri Lanka’s Consumer Price inflation is at 16.8%, and it must repay foreign debt totalling nearly $7 billion this year. Reason for the crisis Ever since the start of the pandemic, 1) Sri Lankan labourers in West Asian countries were left stranded… Continue reading Sri Lanka\u2019s aggravating economic crisis<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,10498],"class_list":["post-175298","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704871219},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/175298","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=175298"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/175298\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=175298"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=175298"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=175298"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}