Economy Simplified

Sri Lanka Economic Crisis Top 3 Reasons

1. Shortage of Foreign Exchange.

1. Shortage of Foreign Exchange.

The agricultural sector in Sri Lanka is dependent on export-oriented crops like tea, coffee & Rubber. The foreign exchange earned through exporting these crops accounts for a large chunk of the country’s GDP Reduced.

Drastic fall in the number of tourists arriving in the country, due to international travel bans and Srilanka's 2nd major source was Travel & Tourism

Drastic fall in the number of tourists arriving in the country, due to international travel bans and Srilanka's 2nd major source was Travel & Tourism

Covid Impact on SriLanka's Economy

Covid Impact on SriLanka's Economy

2. Struggling to pay for Imports

2. Struggling to pay for Imports

Srilanka is import-dependent for everyday basic commodities like fuel, food items & medicine, but a shortage of foreign exchange reserves in the country

3. Ban on Fertilizers

3. Ban on Fertilizers

April 2021, the Rajapaksha-led Government completely banned the import of fertilizers. The nation decided that it will become a 100% organic farming nation.

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