“Due to the fuel crisis, the bread industry is facing serious threats and will collapse soon.” Jaiawan Donna, chairman of the Sri Lankan National Bread Owners Association, told the country’s “Daily Mirror” that bread production will stop in the next two or three days. This is the latest industry of the country’s economy with “lighting red lights”.
Sri Lanka is a typical double deficit economy. “A job document from the Asian Development Bank broke the root cause of Sri Lanka into the current crisis.” The double deficit means that the national expenditure of a country exceeds its national income, and its productivity and services are insufficient. “Analysts believe that Sri Lanka’s most serious crisis in this decades is due to
The poor economic management of previous government has caused dual deficit of fiscal accounts and frequent accounts, and eventually was detonated under the common action of a series of internal and external factors.
The beautiful Sri Lanka is known as the “Pearl in the Indian Ocean”. The tourism industry is an important economic pillar of the country. It is not just that the new coronary pneumonia epidemic has blocked foreign tourists and made the country’s tourism industry slumped.
In the second half of last year, the Sri Lanka had just recovered. At the beginning of this year, Russia -Ukraine conflicts and the Western sanctions on Russia caused the price of global commodities in Russia, which once again thoroughly impacked the Slit economy. In mid -April, Sriors, the Minister of Finance Ali Sabri, said that the country’s basic fuel import costs almost doubled, and wheat prices and shipping costs were rising. Russia is an important source of imports of Sriwai.
Sri Lanka’s production materials and necessities of life rely on imports. Over the past two years, the country’s pillar industries such as tourism, tea and clothing exports have been hit, and the national foreign exchange reserves are urgent, and import expenditures have continued to grow. The country’s fuel reserves are basically exhausted. In addition, in order to attract foreign -funded tax cuts, the decrease in fiscal revenue and the continuous interest rate hikes of the Fed have worsened the country’s economy.
According to reports, Sri Lanka currently owes about $ 51 billion in foreign debt. The International Monetary Fund (IMF) said on the 10th that he was paying close attention to the development of Sri Lanka. As the Sri Lanka has fallen into a debt default, negotiations with the IMF are doomed. “my country has negotiated with the IMF many times in the past,” said Prime Minister Vikramaxinha recently, “But the current situation is different, we are negotiating as a bankrupt country.”
U.S. Secretary of State Broskented on the 10th accused Russia of the restrictions on Ukraine’s grain exports may lead to mirroring. He said to reporters in Bangkok: “We see the impact of Russian aggression everywhere.” Russia’s network quoted Russian experts as saying that the Sri Lanka was caused by Western sanctions on Russia to the world. Surprint all over the world.
The Russian “Viewpoint” quoted the expert of the Russian Institute of Institute of Russia, Mosia Kov, saying that the epidemic and global inflation first hit the most vulnerable country. “The current world situation is that the most developed countries are facing economic difficulties, and for weak countries, this is actually a death penalty. It is impossible to imagine how Sri Lanka will get rid of this situation.