Sri Lanka, mired in a severe economic crisis, declared a state of emergency after President Gotabaya Rajapaksa fled on a military plane after months of protests. Sri Lanka is mired in its worst economic crisis since independence from Britain in 1948, with soaring prices, a shortage of food and fuel, depleted foreign exchange reserves and its first sovereign debt default since independence on May 19. Debt defaults damage a country's reputation, making it harder to borrow the money it needs in international markets, which in turn further damages confidence in its currency and economy.
How did Sri Lanka get to the chaotic situation company banner design it is today, and what solution does the international community have? Please see the six key points combed by "BBC Chinese": 1. How serious is the economic crisis that brought Sri Lankans to the streets? Beginning in early April, demonstrations against rising prices and shortages of supplies broke out in Colombo, the capital of Sri Lanka. The scale of protests continued to expand and gradually spread to all parts of the country. People are outraged that the cost of living has skyrocketed to unaffordable levels.
Food prices in Sri Lanka started rising at the end of 2021 and people are now paying 50% more for food than a year ago. Many people find it difficult to guarantee three meals a day. In addition, fuel shortages in Sri Lanka, power shortages and widespread power outages; a shortage of medicines has put the medical system on the verge of collapse. Essential services such as buses, trains and medical vehicles have come to a standstill in Sri Lanka due to a lack of fuel, which is compounded by the fact that the government does not have enough foreign currency to import fuel.