2008 financial crisis
Sri Lanka's Economic Crisis: Challenges and Potential Solutions 2008 financial crisis Sri Lanka's Economic Crisis: Challenges and Potential Solutions Introduction Sri Lanka is currently grappling with a severe economic crisis that poses significant challenges to the country's stability and development. This article explores the key factors contributing to Sri Lanka's economic downturn and examines potential solutions to mitigate the crisis. 1. Macroeconomic Challenges High public debt: Sri Lanka's substantial public debt, coupled with limited fiscal discipline, has put immense strain on the economy. Rising inflation: Persistent inflation erodes purchasing power and reduces consumer confidence, further exacerbating the economic crisis. Currency depreciation: Frequent depreciation of the Sri Lankan rupee has led to increased import costs and a burden on external debt servicing. 2. External Factors Global...