Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

EXPLAINER: Why Sri Lanka's economy collapsed and what's next
ABC News ^ | July 9, 2022 | Krishan Francis and Elaine Kurtenbach

Posted on 07/09/2022 6:25:47 PM PDT by McGruff

Sri Lanka’s prime minister said late last month that the island nation’s debt-laden economy had “collapsed” as it runs out of money to pay for food and fuel. Short of cash to pay for imports of such necessities and already defaulting on its debt, it is seeking help from neighboring India and China and from the International Monetary Fund.

Prime Minister Ranil Wickremesinghe, who took office in May, was emphasizing the monumental task he faced in turning around an economy he said was heading for “rock bottom.” On Saturday both he and President Gotabaya Rajapaksa agreed to resign amid mounting pressure from protesters who stormed both their residences and set fire to one of them.

Sri Lankans are skipping meals as they endure shortages and lining up for hours to try to buy scarce fuel. It’s a harsh reality for a country whose economy had been growing quickly, with a growing and comfortable middle class, until the latest crisis deepened.

(Excerpt) Read more at abcnews.go.com ...


TOPICS: Crime/Corruption; Foreign Affairs; Government
KEYWORDS:
Navigation: use the links below to view more comments.
first 1-2021 next last
Alot of background information at link.
1 posted on 07/09/2022 6:25:47 PM PDT by McGruff
[ Post Reply | Private Reply | View Replies]

To: McGruff

“The push for organic farming caught farmers by surprise and decimated staple rice crops, driving prices higher.”


2 posted on 07/09/2022 6:36:27 PM PDT by Haddit
[ Post Reply | Private Reply | To 1 | View Replies]

To: McGruff

Don’t worry. We can always print as much money as we want - Alan Greenspan.

Who later said he was concerned about the debt.


3 posted on 07/09/2022 6:44:31 PM PDT by SaveFerris (The Lord, The Christ and The Messiah: Jesus Christ of Nazareth - http://www.BiblicalJesusChrist.Com/)
[ Post Reply | Private Reply | To 1 | View Replies]

To: McGruff

coming here soon........for same reasons......


4 posted on 07/09/2022 6:53:03 PM PDT by Arlis
[ Post Reply | Private Reply | To 1 | View Replies]

To: McGruff

The green economy in action.


5 posted on 07/09/2022 6:55:04 PM PDT by Wayne07
[ Post Reply | Private Reply | To 1 | View Replies]

To: McGruff
Sri Lanka’s prime minister said late last month that the island nation’s debt-laden economy had “collapsed” as it runs out of money to pay for food and fuel.

Good thing we have printing presses to keep us from running out of money.

6 posted on 07/09/2022 7:07:07 PM PDT by AlaskaErik (In time of peace, prepare for war.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: McGruff

“In April 2021, Rajapaksa suddenly banned imports of chemical fertilizers. The push for organic farming caught farmers by surprise…”

Not “explained” to the Great Unwashed by the MSM as demonstrated here, is the reasons behind this.

Somewhat reminicent of Mao’s ingenious ideas concerning farming as quick ways to increase the food supply.


7 posted on 07/09/2022 7:16:08 PM PDT by The Antiyuppie (When small men cast long shadows, then it is very late in the day.)
[ Post Reply | Private Reply | To 1 | View Replies]

C’mon CIA, help us out too.


8 posted on 07/09/2022 7:22:34 PM PDT by proust (All posts made under this handle are, for the intents and purposes of the author, considered satire.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: McGruff

Indeed a lot of info. While we were funding a proxy war giving hundreds of billions, Sri Lanka had just 25 million left. Shameful!

“ The Finance Ministry said Sri Lanka had only $25 million in usable foreign reserves. That has left it without the wherewithal to pay for imports, let alone repay billions in debt.

Meanwhile the Sri Lankan rupee has weakened in value to about 360 to the U.S. dollar. That makes costs of imports even more prohibitive. Sri Lanka has suspended repayment of about $7 billion in foreign loans due this year out of $25 billion to be repaid by 2026.”


9 posted on 07/09/2022 7:26:41 PM PDT by HollyB
[ Post Reply | Private Reply | To 1 | View Replies]

To: proust

I really wonder how many in the masses that rushed the presidential palace were the same type that instigated 1/6 ( Ie Epps) and the Arab Spring.

The pics I saw of those in the house seemed peaceful and happy. Who burned it down?


10 posted on 07/09/2022 7:29:32 PM PDT by HollyB
[ Post Reply | Private Reply | To 8 | View Replies]

Don’t worry.

The Chinese will take over since they are owed money.


11 posted on 07/09/2022 7:36:06 PM PDT by moviefan8 (The proper function of man is to live, not to exist. - M in No Time To Die (2021))
[ Post Reply | Private Reply | To 1 | View Replies]

To: McGruff

Moocher nation. Many more to come.


12 posted on 07/09/2022 8:04:41 PM PDT by HartleyMBaldwin
[ Post Reply | Private Reply | To 1 | View Replies]

To: McGruff

this all started when this government outlawed use of imported synthetic fertilizer and forced ALL domestic agriculture to use “natural” methods instead, you know, to “go green” AND save money ... the resulting crop failures subsequently depleted foreign reserves when they had to be used to import food (instead of fertilizer) ... consequently, no foreign reserves remained to import anything else, including fuel ... “Go Green, Commit National Suicide” ...

btw, most detailed description of what happened to sri lanka, as well as best description of the vital fole of synthetic fertilizers for human progress ...

https://foreignpolicy.com/2022/03/05/sri-lanka-organic-farming-crisis/


13 posted on 07/09/2022 8:23:51 PM PDT by catnipman (In a post-covid world, ALL "science" is now political science: stolen elections have consequences)
[ Post Reply | Private Reply | To 1 | View Replies]

To: McGruff; All
Government run economy.

Government borrowing out of control.

They need the rule of law and limited government.

14 posted on 07/09/2022 8:29:17 PM PDT by marktwain
[ Post Reply | Private Reply | To 1 | View Replies]

To: McGruff

How’s the Morton’s Steakhouse in Sri Lanka doing?


15 posted on 07/09/2022 8:31:21 PM PDT by The Fop (God Bless Donald Trump, Frank Sinatra, Joan Rivers, and the Fightin' Rat Pack Wing of the GOP)
[ Post Reply | Private Reply | To 1 | View Replies]

To: McGruff; Roman_War_Criminal; metmom

[Sri Lankans are skipping meals as they endure shortages and lining up for hours to try to buy scarce fuel. It’s a harsh reality for a country whose economy had been growing quickly, with a growing and comfortable middle class, until the latest crisis deepened.]

Good thing this can never happen in America.

Our politicians are too smart for that and too dedicated to the American Middle Class workers!


16 posted on 07/10/2022 12:09:24 AM PDT by SaveFerris (The Lord, The Christ and The Messiah: Jesus Christ of Nazareth - http://www.BiblicalJesusChrist.Com/)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Wayne07

It’s almost like they are trying to kill us all off! Of course that would be a conspiracy theory… pish posh!


17 posted on 07/10/2022 12:11:59 AM PDT by antceecee
[ Post Reply | Private Reply | To 5 | View Replies]

To: SaveFerris

What will Pete Buttigieg do when the power goes out, the fuel tanks ran dry, and the A/C stops working?


18 posted on 07/10/2022 5:04:39 AM PDT by Roman_War_Criminal (Jesus + Something = Nothing ; Jesus + Nothing = Everything )
[ Post Reply | Private Reply | To 16 | View Replies]

To: McGruff

Mostly a pack of left-wing lies:

https://foreignpolicy.com/2022/03/05/sri-lanka-organic-farming-crisis/


19 posted on 07/10/2022 9:24:54 AM PDT by Cincinnatus.45-70 (What do DemocRats enjoy more than a truckload of dead babies? Unloading them with a pitchfork!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Roman_War_Criminal

Go on “maternity leave” once again?


20 posted on 07/10/2022 12:32:05 PM PDT by SaveFerris (The Lord, The Christ and The Messiah: Jesus Christ of Nazareth - http://www.BiblicalJesusChrist.Com/)
[ Post Reply | Private Reply | To 18 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson