External shocks and internal buffers View(s):Storms do not strike everyone the same way. Temporary fixes may offer short relief, but Sri Lanka must prepare for recurring external shocks by reducing vulnerability and strengthening resilience. For Sri Lanka, this meant a collapse in tourism, exports, and remittances, leading to steep declines in foreign exchange earnings. Having endured a series of shocks both internal and external since 2018, Sri Lanka is now in a more fragile state than many of its neighbours. With limited fiscal space and few external financing options, Sri Lanka can hardly afford another shock of this magnitude.

Source: Sunday Times March 22, 2026 01:39 UTC