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HomeNewsOpinionThe roots of the Sri Lankan crisis and the lessons to be learnt

The roots of the Sri Lankan crisis and the lessons to be learnt

Manas Chakravarty   •

Successive governments made up their revenue shortfalls by borrowing abroad hand over fist. The much-acclaimed Sri Lankan model had feet of clay

Sri Lankans in recent months have endured fuel and food shortages and daily power outages. Most of those items are paid for in hard currency, but Sri Lanka is on the brink of bankruptcy, saddled with dwindling foreign reserves and $25 billion in foreign debt due for repayment over the next five years. Nearly $7 billion is due this year. They have been forced to wait in long lines to buy cooking gas, fuel and milk powder, and doctors have warned there is a potentially catastrophic shortage of essential medicines in government hospitals. (Image: AP)

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