The economic crisis that came over Srilanka is very much illustrated due to some major wrong steps have taken by the history of government. let us find out how, and what is wrong steps have taken by the government which make Srilanka an economic crisis
1. Crisis Reasons Of Economy In Srilanka After Independence
After taking Independence over the British Country in 1948, all the world looked out for Srilanka a very optimized way. Because of the export calculation, it Is a strategic location. And because of tea, rubber, and coconut are export regularly. Srilankan government looking at the very positive way on it.
But there are two problems which have need to be solved. The overall export in whole Srilanka the[ 90 % EXPORT] conduct due to plantation, means rubber tea and coconut which have to diverge regularly. IN future if there is any crisis came in the plantation, so the people of Srilanka never face any problems due to the plantation.
The value that creates due to plantation it have too used in development. But the government can’t solve the first problem. And after the price drop in the international market so profit of the Srilankan government also drops on a regular basis. Due to this, the Srilanka government face first-time crisis of [FOREX RESERVE PRICE CRISIS]
Now, what is a forex price crisis, In any central government of the country, the government have an asset in form of international currency? And if you wanted to increase a forex price so the organic strategy is to increase export conditions. But the Sri Lankan government increase the roots of the plantation. AND the second problem is Srilankan government never use the assets and money on development. In fact, all the money used on unbalanced promises of the government to the public of Sri Lanka is the money that uses in the schemes too. The government use the money on free services. That’s why they never use money in a long term basis.
2. Economy Crisis In Srilanka Due To Late Work On Loops Hole Of Economy
The government of Srilanka never searched for the long term investment if you see the data chart of Srilanka’s economy, the views clearly looks how the public will be happy for two-three years. That’s why they produced free bees regularly, even they don’t have the capability too.
In the region of 1977, the government can’t pay the price of their schemes too. So in this illiterate time government take loans too international banks. But in early time in 1962 government take the action on it.
The government organized the national council strategy committee too. But again the next government start providing the freebees to people for election.
After taking all the wrong decisions in 1977 the government of Sri Lanka recognized some schemes for the future plans, it organized some schemes for Enterpeuners, some business goals and future wave out in again, some more f.ds also provides In it too. The people of Srilanka also accept all the changes, and whereas the growth rate is established in every year with a speed of 2%, in 1977 to 1983 it jumps to 6 % in per year. At that time the international media watching out for Srilanka as a business opportunity. IN 1977 the tourism people ahead of 2lakh per year increase with 4lakh per year.
Now the first two problems which we discuss finally got some solutions on it and the result also produced as fruit full. But after the year 1983, some incident took place where the all process bloom out suddenly.
3. Economy Crisis In Srilanka Due To Civil War
Because some unhealthy issues happen like civil war, the all asset which is utilised in development it converts into Defence line up.IN the year 1982 the total defence budget was 4.4% and after the civil war started it increases up to 21.6 % in the year 1996. Where the government plans focusing on MNCs investment also collapse down. THE government do very hard work for MNCs investment in Srilanka like Motorola or harris corporation lately wanted to investment in Srilanka.
But, because of the civil war the investor never came around Srilanka again. The economic crisis in Sri Lanka is not new for them IMF( international monetary fund )also bailed out them 16 times. Civil war continued till 2009. Till non other investor came again inside Srilanka.
4. Economy Crisis In Srilanka Due To Traped Of International Market
The new government was assigned in 2005. They took many of plenty loans from other regions. In between that government wanted to develop the HAMANTOTA port because it is beneficial for the economy too. And developed all project recommendations and they travelled to the AMERICANS authority where the government wanted to take loan, but after that American government vanished out of the proposal because it is not as worthy that the Sri Lankan government thinks.
They travelled to India also but after much research, India also vanishes all proposals. After all, this happened Srilanka went to China for their proposal after that where Chinese government offers them some unhealthy offers like , the port will be built only if the Chinese company will be assigned on it. And if that money loan was not given up so the port will lease to the china government for 99 years.
And after everyone knows the port will not perform very well and it was leased to China for 99 years.
5. Economy Crisis In Srilanka Due To Covid-19
IN 2019 the tours and travelling were affected very much on it because the economy of Sri Lanka was built 40% of tours and travelling the crisis came over on it will be normal.
COVID-19 pandemic that affected the tourism sector, ill-timed tax cuts, weak government finances and skyrocketing inflation, impacting foreign remittances are some of the main factors behind Sri Lanka’s present economic crisis.