2023-12-16 12:52:55
Sri Lanka’s Economy on the Road to Recovery
After a tumultuous year filled with economic hardships, Sri Lanka is finally seeing some positive changes in its economy. The country, which faced a severe economic crisis in 2022, is showing signs of recovery under the leadership of President Ranil Wickremesinghe.
The crisis began after the COVID-19 pandemic dealt a major blow to the country’s economy, leading to a steep decline in the value of the Sri Lankan rupee. This, coupled with the government’s decision to only allow natural fertilizers for agriculture, resulted in decreased food production and further worsened the economic situation.
The country’s inability to purchase crude oil from foreign countries due to the decline in the value of its currency led to fuel shortages and daily power cuts, impacting the daily lives of its citizens. By the 4th quarter of 2021, the economic growth rate had plummeted, ultimately leading to the country being declared bankrupt.
This dire situation sparked public outrage, leading to the overthrow of the government and the fleeing of former President Mahinda Rajapakse. In July 2022, Ranil Wickremesinghe took over as the new President of Sri Lanka and began implementing measures to boost the country’s economy.
Today, the government released statistics for the third quarter of the current year, showing a significant improvement in the economic growth rate. Sri Lanka’s economy has seen a growth of 1.6 percent, marking the first positive growth since the onset of the economic crisis.
While this is a positive development, the government acknowledges the need for strict measures to ensure sustained economic growth. As the country continues to recover from the effects of the crisis, there is hope on the horizon for a stable and thriving Sri Lankan economy.
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