Sri Lanka Crisis: Helpless condition of small businessmen | Ground Report

The Sri Lankan economy is facing a twin challenge of fast-eroding foreign exchange reserves and surging inflation, leading it to the brink of bankruptcy. Sri Lanka is also facing solvency issues with unsustainable debt levels.

With unprecedented shortage of foreign exchange, the basic needs of the people of Sri Lanka cannot be met. There are huge queues outside petrol pumps as there is no foreign exchange reserve to import petrol, pharmacies have run out of medicines while newspaper houses have run out of newsprint.

Since January 2022, the inflation rate has crossed 18 per cent in Sri Lanka. Angry residents have hit the streets in protest and the Sri Lanka government has responded by imposing a curfew.