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Sri Lanka is an island nation in South Asia—one of the SAARC countries. Sri Lanka is known as a very popular country among tourists worldwide due to its natural beauty and being an island nation.
About 95 percent of the people of Sri Lanka are educated, and the economy was once quite advanced. But still, in 2022, Sri Lanka faced the biggest economic disaster in its history.
Since the country gained independence in 1948, it has never faced such a disaster. Unable to handle this economic disaster, the country was forced to declare itself bankrupt.
Sri Lanka's economic crisis had several causes. One of the main sectors of Sri Lanka's economy is the tourism sector. The majority of the country's income comes from the tourism sector. But the tourism sector has come to a standstill due to the corona epidemic. As a result, the tourism sector did not achieve the expected success. Besides, the amount of remittance sent from abroad has decreased a lot.
Moreover, while giving priority to infrastructural development, the country is saddled with debt. As a result, the country fell into final decline. Sri Lanka was burdened with this debt and could not meet its import expenditures. The price of daily food has gone up a lot. Schools and colleges closed, continuous load-shedding continued, the energy crisis brought life to a standstill, foreign exchange reserves fell. This led to political instability in the country and intense violence across the country, including in Colombo. The then-president, Gotabaya Rajapaksa, stepped down in the face of intense protests.
However, the island nation is currently recovering well from the country's economic crisis. The country is moving forward in a new way to cope with this economic disaster. When Gotabaya Rajapakse left the country, former Prime Minister Ranil Wickremesinghe took over as the new president. After assuming office, President Ranil Wickremesinghe reformed several sectors. The prices of daily necessities, including electricity and fuel are reduced. Also, continue to negotiate to get loan assistance from the IMF. After the loan assistance was approved by the IMF board last March, much relief returned to the country. The country sent a record number of workers abroad last year, surpassing all previous records.
As a result of these reforms in the country, several positive changes are noticeable. After the corona epidemic, the tourism sector of the country started to be crowded again. A significant amount of foreign exchange was earned during this period. Remittances increased as a result of sending workers abroad. Unnecessary expenses were reduced and loans began to be paid. This year, Sri Lanka's tourism income increased by 30 percent and remittances increased by 76 percent, adding $3.2 billion to Sri Lanka's coffers. As a result, reserves touched a 14-month high of $3.5 billion in May. The country's currency has appreciated by 18 percent this year. Even the country's economy is now more satisfactory than that of Pakistan.
However, Sri Lanka has not completely overcome this crisis yet. The country is facing various challenges. Sri Lanka's total debt from the country and outside the country is still more than 50 billion dollars. Of this, China, Japan and India will have to pay about 11 billion dollars. Again, the total debt of 28 billion dollars will have to be repaid by 2027. However, the Lankan government continues to negotiate with the stakeholders for debt restructuring. If successful in this, the country will get more relief.
The way Sri Lanka has turned around in the last one year is undoubtedly amazing. This turnaround in Sri Lanka is being called as an example and lesson for the rest of the world, including Bangladesh, in the global environment. Skilled manpower can change the landscape of the country by eliminating unnecessary infrastructure projects. The best example is Sri Lanka. Skilled manpower can be the main demand force of the country. That driving force can keep the backbone of the country's economy running. Therefore, skilled manpower should be used to properly develop the environment, including the economy, from the grass-roots level of the country by learning from Sri Lanka. It is possible to make a revolutionary change in the country by building effective, skilled manpower. All the common people of the country will enjoy its benefits.
The writer is a student of Department of Social Work at Noakhali Science and Technology University
He can be reached at muntachirmihan1998@gmail
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