In the spring of 2022, Sri Lanka’s external debt reached a level that brought the state close to bankruptcy, resulting in a protracted and extremely severe political and economic crisis. The solution to this crisis will involve a loan from the International Monetary Fund in August 2022, which will require serious austerity measures and reforms from the new government. This analysis aims to present the circumstances of the economic collapse in Sri Lanka, the possible future prospects, as well as the geopolitical processes at play in the background.
Keywords: South Asia, Sri Lanka, Covid-19, crisis, indebtedness
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