Sri Lanka Crisis: How Country’s Balance Of Payments Problem Played A Major Role In Toppling Its Economy
Sri Lanka has been in the news such a lot lately that its current woes are the things of popular knowledge. Everyone can see the intense deprivation caused to its people thanks to the absence of their staple food at an inexpensive price within the market and therefore the shortage of petrol at the pump. Those with even a modicum of data on economics can trace it back to the dwindling interchange reserves which are needed not only to import food but also to service external debt. The Sri Lankan economy has been facing a crisis due to a heavy Balance of Payments (BoP) problem. Its exchange reserves are depleting rapidly and it's becoming increasingly difficult for the country to import essential consumer goods. The current Sri Lankan financial condition is the product of ...
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