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SriLanka is formerly known as Ceylon. This country is officially the Democratic Socialist Republic of Sri Lanka. It is an island country in South Asia.


 It lies in the Indian Ocean, southwest of the Bay of Bengal and southeast of the Arabian Sea. It is separated from the Indian subcontinent by the Gulf of Manner. Colombo is the capital of Sri Lanka. Its present President is Sri Gotabaya Rajapaksa. 


In 1948, after nearly 150 years of British Rule, Sri Lanka became an independent country.


Three ethnic groups of people –Sinhalese, Tamil and Muslims are more than 99% of the population. More than 90% of the Sinhalese are Buddhists.


Sri Lanka’s foreign earnings are from three staple plantation crops- tea, rubber, and coconut.

The country depends on imports for nearly three fourth of its food requirements and almost all of its manufactured goods.


Rice production is the most important economic activity of Sri Lanka, Since its Independence. The total population in Sri Lanka as of April 3, 2022, is 2,15, 70,184.


But due to some wrong planning, the economics of Sri Lanka facing very acute crises.


Sri Lanka Tourist place best in the World.
Sri Lanka Tourist place best in the World.

What does Sri Lanka Export to other countries?

Sri Lanka exports mostly textiles and garments (52% of total exports), tea (17%), and others including spices, gems, coconut products, rubber and fish to the United States, United Kingdom, Germany and Belgium.



The tourism sector in Sri Lanka slows down due to the COVID-19 Pandemic.

Tourism revenues in Sri Lanka averaged 178.08USD Million from 2009until 2021, reaching an all-time high of 475.20 Million USD in December 2018 and a record Low of 0.50USD Million in December 2020.



What does Sri Lanka Import from other countries?

The top Imports of Sri Lanka have Refined Petroleum($1.27 Billion) Light Rubberized Knitted Fabric($722 Million), Packaged Medicaments ($413 Million), Crude Petroleum ($384 Million), Broadcasting Equipment ($311 Million), importing mostly from China, India UAE, Malaysia and Singapore.




What are the reasons Economic of Sri Lanka facing bankruptcy in-2022?


1. According to the World Bank, five lakh people in Sri Lanka have fallen below the poverty line since the COVID-19 pandemic struck.


2. The consumer and statistics department said year on year inflation in December was the highest since the National consumer price Index (NCPI) was established in 2015. The food inflation has risen to 21.5 per cent up from 16.5 per cent in November.


3. Sri Lanka’s foreign reserve has also fallen since President Gotabaya Rajapaksa took office in 2019. The foreign reserve also goes down from $7.5billion to $3.1 billion in the month of December-2021.


4. Unemployment is also very high in the country due to COVID-19 pandemic has eaten the the tourism industry in Sri Lanka.


5. As per the report of the Guardian report that the situation in Sri Lanka is so worse, that people queues have formed for the passport office mostly young educated, want to leave the country.


6. Many economists say that due to wrong planning and policy, Sri Lank faces this problem.


7. One of the major problems of Sri Lanka is its huge foreign debt and debt services burden from China& other countries.


8. Sri Lanka owes China more than $5billion in debt last year. Took an individual $1 million loan from Beijing to win off acute financial crises which are paid in instalments.


9. Not only China the other market government and private sectors also owe money to Sri Lanka.


10. As per Prime Minister Mr Mahendra Rajapaksa the younger brother of the President says there are nearly $6.9 billion in debt has been done from China, India & Japan. 


11. As the per report says, Sri Lanka owes 64.23 billion dollars as a whole from 2016 to 2019). 


12. Sri Lank’s public debt, which has already been on an unsustainable path before the pandemic, is estimated to have risen94% in 2019 and 119% in 2021.


13. As per the report of prosperity Index 2021 Sri Lanka’s position is 88th in the World. As per GDP ranks 113th country in the World.GDP per capita in Sri Lanka is $3679 dollar..



Coconut cultivation in Sri Lanka

What are the adverse effects on people due to economic of Sri Lanka goes down?

1. Acute shortage of Electricity & fuel:-Due to the worst economic crises. The dwindling foreign reserves are also felt declines in the electricity consumption, fuel consumption and cooking gas, resulting in severe shortages in the country.


2. Finance Minister Basil Rajapaksa urged all government authorities to switch off all street lights until March 2022 to conserve electricity.


3. Nearly 1000 bakeries have been shut down as a response to shortage of cooking gas, triggered by the chaotic foreign reserve crises.


4. To conserve energy, daily power cuts have been imposed by the authorities throughout the country, which had nearly 5-7 hours in a day.


5. In March 2022, several schools in Sri Lanka announced that their term/mid-year examination was postponed for an indefinite period due to a shortage of paper throughout the country.


6.On29th March, all scheduled surgeries at the Peradeniya Teaching Hospitals were suspended due to a shortage of medicines. Life-saving medicine is also not available in other hospitals in Sri Lanka.


7. Due to the COVID-19pendamic situation the traveller from the USA, Canada, Australia and other countries decline so much.


Sri Lanka facing food emergency.
Sri Lanka facing food emergency.

What is the present position of Sri Lanka today ( 3-4-2022 )?

1. People of Sri Lanka are protesting and the Government has imposed of state emergency on 3-4-2022.


2. Sri Lanka imposes a 36hours curfew and state emergency comes after protests against shortage of food, fuel shortage& power turned.


3. India start supplying Rice to Sri Lanka in the first major food aid.


4. Sri Lanka people are angry over worsening crises are directed towards the clan, which has held sway over the nation’s politics for decades.


5. Dozen of people are arrested in Sri Lanka amid protests over worsening economy.


6. Power regulator urges government employees to work from home to save fuel and hospitals to suspend routine surgeries.


8. Low-income workers are taking on multiple jobs to survive as the economic 

crises seafood, fuel and medicine cost.


9. New credit line will be used for imports of essentials items such as rice, wheat, flour, pulses, sugar and medicine.


10. Upali newspapers say that their English Newspaper daily and its sister concern stopped due to a shortage of paper in the country.


11. There is no fresh milk, milk powder, fro tea and the prices of baby food are in shortage in Sri Lanka.


12. The tax cut in Sri Lanka lead to a loss of billions of rupees in tax revenue, putting further pressure on the public finance s.

13Sri Lanka has asked China to restructure its debt repayments to help the negative financial crisis. The country is also talking with China for a further $2.5 billion in credit support.


14. The rate of daily needs product sale in Sri Lanka just 2-3 times then the original price.


Milk powder cost of 400 gm is Rs.790.00,Aliter of liquid milk is Rs.150.00,water 1.5 Ltr is Rs95.00,Beer for 0.500 Ltr is Rs350.00,1Ltr Diesel is Rs.200.00, LPG Cost is Rs 2657.00 per Cylender.1Kg Potato is Rs215.00, Gold Price 1 Carat 24 Carat 

is Rs20460.00.Motton 1 Kg is Rs1803.00, where as Meat Chicken is Rs.588.00.


You should Visit Sri Lanka for the beauty of Nature
You should Visit Sri Lanka for the beauty of Nature

India Government announced another $1 billion as credit to Sri Lanka to help shore up the sinking economy of the island nation Sri Lanka.A consignment of 40,000 metric tons of diesel from India reached in Sri Lanka on dt.-1-4-2022.


The country’s president said that” We must take action to increase our foreign exchange reserves. To this end, we have initiated discussion with the International Financial Institutions as well as our friendly countries regarding repayment of the loan in instalments “. 

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I am Ajay Kumar Patra. ( & MBA-Finance) with 27years of Accounts & Taxation Experience in Large Manufacturing Units in India. In 2021 I started my own tax consultancy firm called “Ajay Tax consultant”. I started my Digital marketing on my website "".I have already published more than 100 Blogs on Business, Finance, startups, Digital marketing & Tours & Travel for my viewers.

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