After months of food, gasoline, and energy shortages, Sri Lanka’s debt-ridden economy has “collapsed,” the prime minister warned legislators on Wednesday, underscoring the country’s grave circumstances as it seeks assistance from foreign lenders.

Without mentioning any particular recent events, the island housing 22 million people gave out the predicament and it is thought to be at its worst in recent memory. The PM’s remarks appeared to be made to underline to detractors and opposition politicians that he had been given a challenging assignment that would take time to resolve.

Ranil Wickremesinghe’s, the Prime Minister of Sri Lanka said while addressing the parliament, “Our economy has completely collapsed.” He also added that “a far more serious situation” might arise leading to “a possible fall to rock bottom.”

Due to mounting debt, decreased tourism earnings, additional pandemic consequences, and rising commodity prices, the Sri Lankan economy is collapsing. As a result, the nation is rapidly approaching insolvency and has no money to import toilet paper, milk, fuel, or other basic necessities.

Read more: In Pics: Visuals From The Streets, As Sri Lankans Demand Resignation Of The Rajapaksa Government

This week, representatives from the two major opposition parties are abstaining from attending Parliament to protest Wickremesinghe, who was appointed finance minister and then prime minister a little over a month ago, for failing to fulfill his promises to revive the economy.

According to Wickremesinghe, Sri Lanka cannot afford to buy foreign fuel since its petroleum firm is deeply in debt.

The middle-class population of Sri Lanka, which makes up about 15% to 20% of the country’s urban population, has begun to feel the effects of the crisis. After the economy was opened up to more trade and investment in the 1970s, the middle class started to grow. It has subsequently continued to expand.

Up until recently, middle-class families were often financially secure. Now, folks who never had to worry about food or gasoline are finding it difficult to eat three meals a day.

Years of progress towards the reasonably pleasant lifestyle that was desired throughout this South Asian nation has been halted by dire circumstances.

Image Credits: Google Images

Feature Image designed by Saudamini Seth

Sources: ABC News, NBC News, The Hindu

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This post is tagged under: sri lanka, economy, collapse, economic crisis, Sri Lanka Crisis, Sri Lanka emergency, economy collapse

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