WHY ARE SRI LANKANS PROTESTING IN THE STREETS?

April 11, 2022
3 years ago

Thousands of Sri Lankans have taken to the streets in recent days to seek President Gotabaya Rajapaksa's resignation.

 

Food shortages, skyrocketing costs, and power outages are all part of the island nation's greatest economic crisis since obtaining independence from Britain in 1948.

 

Many people blame the government. Sri Lanka's troubles stem from the fact that its foreign exchange reserves are nearly depleted.

 

It means it can't afford to pay for essential food and fuel imports, resulting in severe shortages and sky-high costs.

 

The government blames the epidemic, which almost wiped off Sri Lanka's tourism industry, which is one of the island's most lucrative sources of foreign revenue. It further claims that a string of devastating bomb assaults on churches three years ago scared visitors away.

 

Many experts, however, believe that economic mismanagement is to blame. In Sri Lanka, the cost of life has risen dramatically, with food now costing up to 30% more than a year ago.

There are several reasons for this, but one of the most important is that after Sri Lanka ended its 30-year civil war in 2009, it opted to focus on its own markets rather than selling to global markets. As a result, export revenue remained low, while import costs continued to rise.

 

In addition, the government built up massive debt to support what opponents have labeled as pointless infrastructure projects.

 

Sri Lanka had $7.6 billion (£5.8 billion) in foreign currency reserves at the end of 2019, but just $2.3 billion (£1.75 billion) by March 2020.