What is Sri Lanka economic crisis ? explained

Sri Lanka got its independence in 1948. It has a population of over 22 million people. Its old name was Ceylon. Its capital has changed many times in the history from anuradhapura to Kandy to Colombo and now it is Sri Jayewardenepura Kotte. It has a very big port city known as Hambantota which is also one of the most important reason of Sri Lanka's economic crisis. It also has a very big petroleum reserve in trincomalee which is being developed by India. The northern most part of Srilanka is known as Jaffna where LTTE originated .

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Lets look at the main income sources of the Sri Lankan economy :-

The main income sources of the Sri Lanka's economy is Agriculture and Tourism. These two were the most important contributors of Sri Lanka's economy. Lets see how these two got destroyed :-

Tourism Sector 

1.  The Tamilian's constitute almost 12% of the Sri lanka's population. The Tamilian's are known to be one of the most discriminated ethnic groups in sri lanka. The Tamil population is the minority group and thus their discrimination has become a subject of hate by the Indian Tamils who mainly follow the Hindu religion. Thus it has affected India-sri lanka relations resulting in decrease of the tourists from India.                         
2. The Christians constitute almost 7% of the Sri lanka's economy. There was an incident in sri lanka known as 'The Easter Day Blast" on 21st April, 2019 where 250 people were killed including 45 foreigner's. This incident has affected the countries image very badly and thus from then foreigners had denied to travel to sri lanka for the lack of safety.       
3.  Sri Lanka has also banned BURQA on 27th April,2021 which had triggered a major controversy as Muslim's contribute to over 9% of its total population which affected foreign relations severely  and ultimately sri lankas image somehow got damaged on the international platform which has ultimately made it difficult to get loans from IMF (International Monetary Fund).This has also prohibited tourists to think to visit this country.                                                                                 
4.  Major social media platforms has also escalated many internal matters resulting in voilence and destruction leading it to instability.                        
5.  The covid pandemic finally did the remaining part to destroy the economy as everything went under the lockdown and thus the whole tourism industry got destroyed.

Agriculture

The coconut farming is very famous is Srilanka . It also cultivates huge amount of rubbers and exports tea. Its was one of the major exporters of the tea before the economic crisis.

one of the major reason which affected sri lankan agriculture industry was banning of the fertilizers. Sri Lanka banned imports of the fertilizer's citing that it will do organic farming to produce its own crops. Fertilsers are used to grow crops for the short time but it damages the soil in the long run where as in organic farming the it doesn't cause any damage but it takes a lot of time as almost as 10-15 years. SO As soon as the imports where banned there was a heavy demand of organic fertilizer's so sri lanka turned up to china and purchased organic fertilizer's worth 70 million USD but soon it came to know that there was a huge defect in them and it was then returned back to china which again cost them 7 Million USD.

This decision affected sri lanka in such a way that it had to import wheat and rice which it used to produce heavily earlier.

Sri Lanka also made a big decision citing to declare a tax heaven for the comapnis  but as soon as it was declared , The Covid Pandemic started and thus al the industries immediately got shut down, many people lost their jobs and thus the already broke sri lankan economy got devastated.

The destruction of its major industries contributed to its huge economic loss and then after that no money was left with the sri lankan government as forex reserves so the the petroleum prices soared heavily inflating all the other resources . Thus inflation rised heavily in the country.  Sri Lanka has today of almost 35 billion USD of loans with no money left. Sri Lanka has also also moved towards the IMF for the emergency loan packages but due to its image downfall it has got various problems for it.

The current scenario of Sri Lankas economic crisis 

1.  Sri Lanka  currently doesn't have any money left to even buy papers so it has closed down its two newspaper companies and has also cancelled all the exams.

2. it has also not money to rum its power plants so people experience a long haul 18-20 hour of power cuts daily.

3. The inflation has sored making it very difficult for the poor and middle class people.

4. The restaurants are also closed because the gas prices are extremely high so it is also possible for a food crisis in  Sri Lanka .

5. One of the major reasons for the economic crisis of  Sri Lanka  is its Dynasty politics. The Rajapaksa family is heavily corrupt and all of its family members have taken apart of the sri lankan government. 

6. Trains have reduced in frequency, forcing travelers to squeeze into compartments and even sit precariously on top of them as they commute to work.

7.Patients are unable to travel to hospitals due to the fuel shortage and food prices are soaring.

My Conclusion :-

I think the main reason behind the economic crisis of sri lanka is china. China has also taken the Hambantota sea port of sri lanka for 99 years of lease which clearly depicts the debt trap policy of China. The main motive of china is to give huge debts to poor countries and when they are not able to pay it back just take control of their land and use it for its own military purposes. Sri Lanka has declared that it is bankrupted now has only the Bail out package from the IMF can save them. India has also given 1 Billion USD of credit line to sri lanka and has also sent humanitarian help.