Sri Lanka warns of looming foreign debt crisis

The Treasury warned that Sri Lanka is facing a debt crisis on Sunday and accused the former government as outsourcing a series of expensive projects.

Mr. Mangala Samaraweera said the capital and interest expenditure this year will amount to $ 2.84 billion, in order to repay luxury project financing mainly under the guidance of former President Mahinda Rajapakse. "The crisis will worsen next year," Samaraweera said in a statement that the repayment in 2019 is expected to rise sharply to 4.28 dollars. "Repayment is used to pay debts that occurred during the Rajapakse administration due to waste, fraud and fraud, corruption by Rajapaks's oligopolistic government is supporting it," he added.

Samaravilla said the Rajapakse government acquired two high interest loans equivalent to $ 1.5 billion in the last year of the decade.

According to officials, Mr. Rajapakse relied heavily on China to finance large-scale infrastructure projects, but in the end many people burdened Sri Lanka's $ 87 billion economy.

The government that banished Mr. Rajapakse in 2015 was obliged to lease a port to lossy China nominated and named by a powerful leader of his southern Hambantta national constituency. The international airport built under the name of Mr. Rajapakse encounters the same fate and income is insufficient to pay salary. Only one airline company is about to privatize the airport operating at Rajapak International Airport, and no progress has been seen.

In the face of the balance of payments crisis, Sri Lanka is currently shrinking its three-year $ 1.5 billion relief plan negotiated with the International Monetary Fund in June 2016. AFP

At the same time, the external crisis of Sri Lanka is approaching. Despite the recovery of exports in 2017, the growth prospects in the Sri Lanka rupee market are still far behind. Therefore, the economic recovery seems to be very difficult in the next three years. In the context of a deteriorating economic situation, the country is suffering from a devastating political struggle now. Politicians involved in the fight prove that they are ordinary people and pursue only self-sufficiency. But when they fight each other, they will bring pain to others.

Objective: The purpose of the survey was to identify the cause of the economic crisis in Sri Lanka and to mitigate the impact of the economic crisis on the development of Sri Lanka. METHOD: Because this is a qualitative study, data is gathered from articles, books, and online resources. As a result, there is no universal approach to all kinds of crises for not only Sri Lanka but all countries. In this era, prevention is not the cure but the correct policy. There is a clear consensus among experts in this field that if such a financial crisis occurs it may affect the real economy. Conclusion: The economic crisis had a serious impact on unemployment, inflation, economic growth, imports and exports. But Sri Lanka is trying to prevent this harm

The Sri Lankan economy is at stake in every way. It began around 2013 when growth data began to decelerate from the postwar high economic performance in the past two years. The author of this article warned with a series of articles published in this series. In an article published before the start of 2017, the author wrote "Warning sign of 2017 economy: should not be ignored", a big plan celebrating the second anniversary of the solidarity government gave the national experience I warned that I completely ignored it. The points of the economic crisis reference article are as follows.