Sri Lanka Crisis: Efforts to revive the financially troubled Sri Lanka, from selling airlines to printing new currency

Posted on 18th May 2022 by rohit kumar

The situation in Sri Lanka, which is facing the biggest economic crisis in the country's history, is getting worse with each passing day. People are getting violent on the streets, while on the other hand, the political turmoil is also at its peak. But in the midst of all this, the economic crisis in the island country is not taking its name. Now the new Prime Minister Ranil Wickremesinghe has taken big decisions like selling government airlines and printing new currency to get the country out of the current crisis.

 

Ranil Wickremesinghe's waist

 

It is worth noting that on Thursday itself, Ranil Wickremesinghe was appointed as the new Prime Minister of Sri Lanka. After this, he has taken such big decisions to revive the country which is facing a big economic crisis. A report said that a proposal has been made by Wickremesinghe to sell the state-run airline. Apart from this, the government is also deciding to print new currency, because looking at the current situation, the government does not even have money to pay salaries to its employees.

 

People in need of essential goods

 

In the last few months, the economic crisis in Sri Lanka has taken such a severe form that the people of the country started crying. The country's foreign exchange reserves are almost exhausted, due to which Sri Lanka is not able to import even essential goods. Significantly, the country imports most of its needs. It includes everything from medicine to oil. According to the report, the share of petroleum products in Sri Lanka's total imports was 20 percent in December last year. But, due to the decrease in foreign exchange reserves, the government of Sri Lanka is failing to import essential items including fuel. Due to this, there is a shortage of essential commodities in the country and their prices are touching the sky day by day.

 

Inflation at a peak of 21.5%

 

If we look at the inflation data in Sri Lanka released recently, it has reached a new high of 21.5 percent in March. Let us inform here that in the same period a year ago, ie March 2021, it was at 5.1 percent. According to these figures released by the country's Census and Statistics Department, food inflation in Sri Lanka has been hit hard and it reached 29.5 percent in March. The situation is such that petrol and diesel are not available and the prices of everyday things are becoming out of reach. Meanwhile, the energy crisis has made people's conditions miserable. Now people here have to live without electricity for ten hours every day.

 

No-confidence motion against President dismissed

 

In Sri Lanka, which is facing inflation, the situation has become so bad that people are continuously protesting. People are also losing their lives in the clash between these protesters and the police. People are blaming President Gotabaya Rajapaksa for the situation that has arisen in the country and are demanding his resignation. Meanwhile, let us tell you that the no-confidence motion moved by the opposition against President Gotabaya Rajapaksa in Parliament proved to be unsuccessful in Parliament on Tuesday. According to the report, 119 MPs voted against the motion, while only 68 MPs voted in favor of the motion, making the no-confidence motion unsuccessful. Meaning it will keep 72-year-old President Rajapaksa in his post.

 

World Bank gave aid to Sri Lanka

 

Sri Lanka has received $160 million (Rs 12,40,84,16,000) aid from the World Bank. Prime Minister Ranil Wickremesinghe has said that he is looking at the possibility of using part of it to buy fuel amid the ongoing fuel and gas shortage due to the economic crisis. Wickremesinghe said that he also expected to get a grant from ADB (Asian Development Bank). He said that the entire money received from the World Bank cannot be used to buy fuel. Wickremesinghe, in his address to the nation on Monday, had said that two more petrol shipments under the Indian credit line are due this week and by May 29. His remarks came after angry protesters blocked several roads here on Wednesday to protest against the ongoing fuel and gas shortage due to the economic crisis.

 

Sri Lanka is in the trap of heavy debt

 

Let us tell here that the biggest reason for the worsening of the situation in the country is the huge debt on the country including China and other countries. Amid the economic crisis, the government had raised its hands in repaying this debt of $ 51 billion (Rs 3 lakh 88 thousand crores) in the past. Talking about the conditions of the country, the energy crisis here has deepened so much that every day more than ten hours of a power cut is being done. People also have to buy a bread packet for $ 0.75 (150) rupees. Not only this, the price of one kg of rice and sugar has reached Rs 290 per kg. At present, people have to spend up to Rs 100 for a tea. The price of one kg of chilies increased to Rs 710, while the price of brinjal increased by 51 percent, then the price of onion increased by 40 percent. Had to pay up to Rs 200 for one kg of potatoes.

 

Also Read: Sri Lanka Crisis: Only today's petrol stock is left in Sri Lanka, the coming days will be difficult, there will be some relief after India's help