Featured image of post 'We are fasting as if it's Ramadan': Sri Lanka on the brink of bankruptcy; millions bear the brunt

'We are fasting as if it's Ramadan': Sri Lanka on the brink of bankruptcy; millions bear the brunt

The country has an outstanding debt of $7 billion to be repaid in 2022

The country has an outstanding debt of $7 billion to be repaid in 2022

Summary

  • In the Kalpitiya area in northwestern Sri Lanka, bordering one of the world’s most beautiful beach destinations, entire clusters of villages are starving.
  • Since 2014, Sri Lanka’s foreign debt level has been on the rise and reached 42.6 per cent of GDP in 2019.
  • China is Sri Lanka’s biggest lender, accounting for at least $4 billion Sri Lanka’s $35 billion foreign debt.
  • However, China and India are not the only countries cash-strapped Sri Lanka has recently borrowed from as it struggles with crushing foreign debt.
  • Sri Lanka’s inflation rocketed further after a record money printing by the government to maintain low interest rates in November.