Sri Lanka’s economic crisis erupted this week when protesters stormed the country's presidential palace, prompting the resignations of President Rajapaksa and PM Wickremesinghe. Here’s what caused Sri Lanka's worst crisis in 70 years:
Ten days of bailout talks with the International Monetary Fund ended without a deal at the end of June, but the international body has vowed to keep the negotiations going. Wickremesinghe last week declared that his country's economy hadWhy are people protesting?
The United Nations in Sri Lanka last month launched a bid to raise $47.2 million to assist the 1.7 million people most affected by the crisis. Around 5.7 million were in need of immediate life-saving assistance, the agency estimated.Arun Sankar / AFP - Getty Images The dwindling reserves followed years of mismanagement of the country's finances, with the government spending more than the overall income and production of tradable goods and services. To compensate, the government increasingly relied on its foreign reserves to stay afloat.
The country pre-emptively defaulted on around $51 billion in foreign debt in April, the first time it had done so. Sri Lanka’s central bank said the country could not afford to repay unless there was a debt restructure.Protesters in Colombo in recent months have blamed the crisis on Rajapaksa, whom they accuse of mismanaging the city’s finances and of corruption.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
President Rajapaksa flies out of Sri Lanka to MaldivesGotabaya Rajapaksa, his wife and a bodyguard were among four passengers on board an Antonov-32 aircraft that flew from main international airport, immigration officials say.
Weiterlesen »
Sri Lanka central bank reiterates crypto warning following protestors seizing president's residenceIn response to “recent developments in relation to virtual currency usage,” Sri Lanka's central bank said it has not authorized or licensed any company to offer crypto-related services, including exchanges, initial coin offerings, and mining.
Weiterlesen »
Sri Lanka lawmakers to pick new president but no deal on PMSri Lanka’s lawmakers have agreed to elect a new president next week but are struggling to decide on the makeup of a new government to lift the bankrupt country out of economic and political collapse.
Weiterlesen »
President flees Sri Lanka amid crisis as ire turns toward PMCOLOMBO, Sri Lanka (AP) — Sri Lanka's president fled the country early Wednesday, slipping away only hours before he promised to step down under pressure from protesters angry over economic chaos that has triggered severe shortages of food and fuel.
Weiterlesen »
What's next for Sri Lanka as angry protesters occupy their leaders' luxury houses?Angry protesters who stormed the official residences of Sri Lanka's President and Prime Minister have succeeded in forcing their leaders' resignations as the country lurches further into crisis.
Weiterlesen »