Hello everyone,😇

How are you guys? Hope you are keeping well. Today I'm going to atend to the contest. That host by @f2i5. First at I would like to tell you this is my very first article for write to this community. So in this article I hope to talk about current economic situation in Sri Lanka. I think I have little bit good knowledge about economic because I did economics as a subject for my higer education. Ok let's move to article.

Image by Darko Djurin from Pixabay

Sri Lanka is currently facing the worst economic crisis in history. This problem did not arise overnight. As a Sri Lankan & economic student I think there are sevaral reason for this crisi. They are,

• Short-sighted political decisions.
• Excessive foreign borrowing.
• Import-export gap.
• Government business losses.
• Frequent swings in political decisions.
• 2019 Easter sunday attack.
• Covid-19 pandamic.

Short-sighted political decisions.

After independence from the British in 1948, the politicians who were elected continuously gave unnecessary assistance to the people to achieve narrow political goals. For example, providing housing, providing jobs for the purpose of getting votes, etc. can be taken. Also fraud and corruption increased.

Excessive foreign borrowing.

As the government had to continuously give unnecessary relief to the people, the government had to take foreign loans.Currently, the total amount of debt that the government has to pay is more than 60 billion USD(294 billion Steem). When written in numbers, it is 294,000,000,000(Steem).

Import-export gap.

Imports have always increased due to the popularity of imported goods in the country. Due to decrease in exports, foreign reserves in the country became scarce. This has been going on for years. According to the staticstic, there was a gap of aboud 6 billion USD(29 billion Steem) almost every year.

Government business losses

Since there is a socialist government, the government also conducts business. Most of those businesses make losses.The government levies taxes and borrows to cover those losses.

Frequent swings in political decisions.

After independence, Sri Lanka was ruled by the United National Party and the Sri Lanka Freedom Party. Among them, the Sri Lanka Freedom Party followed socialist economic policies. The United National Party followed capitalist economic policies. As governments change, so do economic policies.As a result, the economy did not grow properly.

2019 Easter sunday attack.

With the ISIS terrorist attack in 2019, the arrival of tourists into the country stopped. As a result, the country was economically unstable due to lack of foreign exchange.

Covid-19 pandamic.

In 2020, the country became economically bankrupt with the Covid pandemic. After that, essential services such as fuel and electricity also stopped.

What's going on

However, the economic crisis that lasted for 3 years is ending now. The arrival of tourists is also high now. The prices of goods and services are going down now. Economists say that by 2026 the economic crisis will be 100% over.

So My small article is over now. I hope you got lot of thing from that. So I'm stopping for today. I would like to invite @besticofinder @abhimani @vishwara to join this contest.

Thank You,✨
Kusal Kanchana