Sri Lanka is going through the worst phase of economic crisis, made an announcement recently

The economic burden on the neighboring country Sri Lanka is increasing continuously. Sri Lanka is currently going through the biggest economic crisis after independence. In this difficult period, Sri Lanka has declared itself bankrupt by taking a big decision. Sri Lanka has announced that it is unable to repay the International Monetary Fund's outstanding foreign debt of $ 51 billion.

Significantly, within just one year, a total of 1600 debt has increased on Sri Lanka. In April 2021, the total debt on Sri Lanka was $ 3500 million, which has increased to $ 5100 million in April this year. On this situation, Sri Lanka's Finance Ministry has announced that creditors including foreign governments lending to the South Asian nation can choose to encash any of their interest payments or pay in Sri Lankan rupees from Tuesday afternoon.

The pace of economic growth in Sri Lanka was much higher than that of India just two years ago. In the year 2020, Sri Lanka's per capita income was $ 4053 annually according to the market exchange rate and $ 13,537 annually on the basis of purchasing power parity, i.e. much more than India at that time. On the basis of Human Development Report also Sri Lanka's position in 2020 was better than India. In the United Nations Human Development Report 2020, where Sri Lanka was ranked 72nd, while India's place was only 131st.