Sri Lanka’s crippling economic crisis risks starvation across the Island nation of 22 million while acute shortages and blackouts will get worse, the speaker of parliament warned Wednesday. Public anger is at a fever pitch, with crowds attempting to storm the homes of several government figures — including President Gotabaya Rajapaksa — and large demonstrations elsewhere. “We are told this is the worst crisis, but I think this is just the beginning,” Abeywardana said at the start of a two-day debate on the worsening economic woes. Rating agencies have warned of a potential default on Sri Lanka’s $51 billion foreign debt, and authorities are unable to raise more commercial loans because of credit downgrades. Economists say the crisis has been exacerbated by government mismanagement, years of accumulated borrowing and ill-advised tax cuts.

Source: The Nation April 06, 2022 20:39 UTC