How Bad Economics Doomed Sri Lanka Tharan Sutharson 22% of the country in food insecurity. Inflation at over 70%. $51 Billion in foreign debt. All tragic impacts of the economic crisis that Sri Lanka is currently in, historically the worst economic crisis since the country gained independence in 1948. This is a severe crisis that has been ongoing since 2019, due to many reasons from a weak government body, loans and heavy importations. These are all factors that will be considered in this article in order to answer one fundamental question: What caused the Sri Lankan economic crisis? Tourism Tourism is a valuable income earner for Sri Lanka, being the third largest foreign exchange earner as it accounts for 12% of the country’s GDP of $ 84 Billion (as of 2019). Sri Lanka is a popular holiday destination for various reasons such as tropical climate all year round, a range of diverse and rare animals on the island as well as the culture and the history of Buddhism in the country. B...
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