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Sri Lanka Crisis: Factors Behind Triggering A Historic Depression

Pooja YadavMay 13, 20220

Sri Lanka has been in the news such a lot recently that its current woes are the things of popular knowledge. The acute deprivation caused to its people thanks to the absence of their staple food at a reasonable price within the market and therefore the shortage of petrol at the pump is evident. The Covid-19 Pandemic that put the entire tourism industry on hold which was the beauty of Sri Lanka. As far as the percentage is concerned, It accounted for 10% of Sri Lanka’s GDP. This led to a dip in the forex reserve (from $7.5 billion in 2019 to $2.8 billion in July 2021). High debt resulting from other sources of revenue led to high cost in importing of essential items, including food. A depreciated currency, high dependence on imports and hoarding led to a steep rise in food ...

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Will It Be Right To Ban Freebies Schemes In Heavy Debt Ridden States In India? Read To Know!!

Gunjan ChaudharyApril 9, 20220

Like Sri Lanka, many Indian states like Punjab, Rajasthan, West Bengal are also entangled in a huge debt trap. If there was no center support, then these states too would have become financially poor like Sri Lanka. Like the states, the central government is also getting entangled in the debt trap. To save the country from economic crisis, economic experts are advising to gradually reduce subsidies in items like agriculture and health and ban freebies schemes. But will it be the right decision to put a complete ban on the schemes being provided to the poor in a country like India? Economic Affairs expert Dr. Nagendra Kumar Sharma told that taking loan is beneficial only when the loan amount is used to generate financial resources. But the report of the Reserve Bank of India shows that m...