Sri Lanka could go bankrupt this year? Fears arise as the country battles an unprecedented economic crisis induced by the Covid pandemic and the country's piling foreign debt. 10 things you must know about the deepening economic crisis in Sri Lanka:
1. At least two people have died in Sri Lanka while waiting in long queues for fuel as the Government doesn't have money to buy it.
2. The country had to cancel exams for millions of school students as the country ran out of printing paper with Colombo short on dollars to finance imports.
3. One of the most pressing problems for Sri Lanka is its huge foreign debt burden, in particular to China. It owes China more than $5bn in debt and last year took an additional $1bn loan from Beijing to help with its acute financial crisis, which is being paid in installments.
4. Ratings agency Fitch downgraded Sri Lanka last month over fears of sovereign default on its $26 billion foreign debt, according to an AFP report.
5. According to World Bank estimates, 5 lakh people in Sri Lanka have fallen below the poverty line since the pandemic struck.
6. President Gotabaya Rajapaksa requested people's support by limiting electricity and fuel consumption to cope with the worst economic crisis in memory.
7. The country's economy contracted by 1.5 percent in the third quarter of 2021.
8. Foreign exchange reserves hit rock bottom to reach less than $400 million
9. Prices of rice, pulses, bread, sugar, vegetables, fish have all risen several times.
10. Sri Lanka is seeking a bailout package from the IMF.
Also read/watch | 2 dead in Sri Lanka waiting for fuel as Govt runs out of money to buy oil