The Sri Lankan economy has been facing a crisis owing to a serious balance of payments (BoP) problem. Its foreign exchange reserves are depleting rapidly. It is becoming increasingly difficult to import essential consumption goods. The country is unable to repay past debts. This article is an effort to locate the proximate causes of the current crisis and document the roles of different groups and organisations in its making.
One can, of course, trace the roots of the crisis to colonialism and Sri Lanka’s post-war developmental pathway but let us stick to the last decade for our purposes. Even in the 21st century, Sri Lanka’s economic fortunes continued to be tied to the export of primary commodities such as tea and rubber, and garments. It mobilised foreign exchange reserves through primary commodity exports, tourism and remittances, and used it to import essential consumption items including food.
Editorial | Crisis in Sri Lanka
