HomeDiplomatic NewsINGOsSri Lanka economic crisis worsens

Sri Lanka economic crisis worsens


Colombo, 3 April 2022 (TDI): Sri Lanka declared a state of emergency as the unrest caused by the ongoing economic crisis reached new extremes. In an economic downturn the worst the country has faced since its independence in 1948, there are widespread shortages of many essential commodities.

The President of Sri Lanka, Gotabaya Rajapaksa, declared an emergency on Friday after thousands of protestors tried to storm his house amidst the prevailing conditions. The state of emergency was declared for the protection of public order and the maintenance of supplies and services essential to the life of the community. The Lockdown will go into effect from Saturday 6 PM to Monday 6 AM (Sri Lankan time)

Protests continue to happen as the country faces the worst economic downturn ever since its independence in 1948. Fuel shortages, energy shortfalls, and the unavailability of basic commodities like powdered milk have pushed many to take to the streets, holding signs and candles, calling for the resignation of the President.

Compounding this is the jump in inflation, the country saw an 18.7% increase in inflation in March while food prices soared to 30.1%. Sri Lanka banned the import of many goods in March 2020 in order to save foreign currency required to pay back $51 billion worth of loans the country has accumulated.

The crowds burnt two military buses, motorcycles, and a police jeep. 53 protestors were arrested while two were injured in an altercation with the authorities.

Diesel shortages have caused many problems for daily wagers and industries while 13-hour power cuts mandated by the state have also caused their own set problems, additionally, hospitals around the country as facing shortages of life-saving medicines.

India extended a consignment of 40,000 MT of diesel to the country on Saturday with an additional $500 million given through a line of credit.

Sri Lanka is currently looking for a bailout by the IMF while it takes up more loans from China and India.

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