New Delhi: The ongoing political and economic turmoil in India’s neighborhood has caught the attention of the whole world. India is also monitoring the economic and political situation in Sri Lanka. India is also worried that China will not take advantage of this. Food and drink in Sri Lanka is touching the sky. At the same time, there is anger among people about the political situation. It is important to know why this is the situation in this country in the midst of political turmoil and economic crisis. This is because at one point of time Sri Lanka was on the path of progress. According to experts, Sri Lanka is responsible for this.
Sri Lankan Economy special role of tourism in
According to experts, one reason for this plight was also the global corona epidemic, over which no one had control. Its effect was seen all over the world. Professor Harsh V Pant of the Observer Research Foundation says that Sri Lanka’s economy is based on tourism. People from all over the world come here to see the natural beauty of this place. Tourism accounts for about 12.5 percent of the GDP. Its pace did not slow down before Corona. But global sanctions derailed it. After this the steps taken by the government made the situation more serious.
Sri Lanka was on the path of progress
Sri Lanka is embroiled in a protracted civil war. Nevertheless, the country has progressed faster than many other countries. Sri Lanka has also performed well in the United Nations Human Development Index. Professor Pant says that the reason for Sri Lanka’s plight is its wrong policies. Signs of Sri Lanka’s misfortune were already visible.
tax rate cut
The biggest loss to Sri Lanka’s revenue has come from tax cuts. Global credit rating agencies have also raised questions on this decision of the government. The decision has made it difficult for Sri Lanka to access affordable financial resources from the international financial system. China took advantage of this situation and Sri Lanka became dependent on China. The country already burdened with debt became even more indebted.
wrong farming policy
The country also had to bear the brunt of the wrong policies implemented in the agriculture sector. The government has banned the use of chemical fertilizers. This had a direct impact on agriculture and food. The government ignored the fact that it was not possible to move towards organic farming overnight. As a result, traditional agricultural production lags behind. Although the government later withdrew the decision, but by then it was too late. The country was showing signs of a food crisis. The country is currently facing a severe food crisis and the economy has been badly hit.
close friendship with china
One reason for Sri Lanka’s plight is also the Rajapaksa family’s proximity to China. Because of China, Sri Lanka tried to distance itself from an old friend like India. Now that Sri Lanka is on the verge of poverty, China has turned its back on it. At present, China is far from regretting the situation. China has categorically refused to give any concession on its loan to Sri Lanka. On the other hand, Sri Lanka has remembered India in bad times.
India the hard times remember
India has also done its duty well. India has provided loan to Sri Lanka for the supply of essential commodities. India is also sending thousands of tonnes of food items including rice and diesel petrol to Sri Lanka. India has given a loan of Rs 6,500 crore to Sri Lanka in the first two months of this year itself. Apart from this, India will give a loan of Rs 7,500 crore to Sri Lanka in the coming days.