ശ്രീലങ്കയിൽ സാമ്പത്തിക പ്രതിസന്ധി രൂക്ഷമാവുന്നു.
Wednesday, 30 March 2022
Severe Economic Crisis in Sri Lanka
Protests have erupted in
Sri Lanka as country reels under severe economic crisis as prices of essential
commodities and fuel are reaching sky high. The country is witnessing long
queues at fuel stations and grocery shops, with the Gotabaya Rajapaksa
government announcing deploying military at the fuel stations. According to
reports more than three elderly people have dropped dead at fuel queues. The
current economic crisis has been fueled by rampant pursuant of neoliberal
policies, along with severe repression of dissenting voices, and exacerbated by
Coronavirus pandemic. Further the government had turned towards India and China
for massive loans for its developmental projects making the country’s economy
highly debt ridden. The current financial crisis has led to critical shortfall
of foreign currency, leaving traders unable to finance imports. The post war
period in Sri Lanka witnessed a second wave of neoliberalism with the approval
by the executive board of the International Monetary Fund (IMF) of US$ 2.6
billion Stand-by Arrangement for Sri Lanka in 2009. This pushed the country’s
economy towards privatization and real estate and infrastructure development,
requiring major flows of global finances and counted on returns from the
tourism sector. As the crisis deepens and unemployment rate reaching 5.2 %,
many Sri Lankans attempted to venture into agriculture. But the lack of state
support and sudden ban on importing of chemical fertilizers in 2021 broke the
back of agricultural sector in the country. The state sponsored ambitious
project of establishing 100 percent organic farming failed severely leaving
millions of farmers with failed crops. The Sri Lanka government had to pay $200
million in compensation to the farmers under the botched organic farming
scheme. Facing the biggest economic crisis in a decade, the Rajapaksa
government is moving towards cutting down budget for social sector, which will
further deteriorate the condition of millions of working-class Sri Lankans. The
Rajapaksa government is now seeking a bailout from the International Monetary
Fund (IMF), which says the government's foreign debt burden of $51 billion is
unsustainable. With government approaching IMF, the international agency has
called for urgent reforms to the island's economy. Such reforms will only
exacerbate the current hardship faced by millions of Sri Lankans and further
destroy the existing social security net for the people.