Hundreds of small businesses are collapsing in Sri Lanka – due to the ongoing economic crisis.
Getting an International Monetary Fund bailout comes with stringent conditions, including higher interest rates and subsidy cuts – making it difficult for entrepreneurs to survive.
It is particularly hard for farmers and fisherman in rural areas.
Al Jazeera’s Minelle Fernandez reports from Palaly, Sri Lanka.
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#SriLanka #SriLankaEconomicCrisis #SriLankaSmallBusinesses #InternationalMonetaryFund #SriLankaEconomy
Tough times ahead. Even though I have sufficient income from my job, I’m trying to survive on the bare minimum, in anticipation of worse inflation in future. I’m sure a lot of Sri Lankans are doing this. The cost of living crisis is a worldwide problem.
The government already runs a budget deficit, so I don’t see how they could provide anymore relief to these SMEs,, without plunging us further and further into more debt. It’s important that the government cuts spending, in order to tap into that IMF bailout.
I think one way to solve things is not much about cutting costs,because it could cause a deflationary trap on its economy. But to reform the migration policies and make it easier for foreigners to get a longterm residence permit in the country.
They did roll-out a so called “golden visa” for foreigners but its policies are horrible: they are basically targeting very wealthy individuals ($200k bank deposit) and directing them to inject the capital into real estate, again a sector that is ripe of speculation and corruption. Instead, it would be a better idea to direct that money into fully-sustainable agriculture projects or cooperations (organic and with no chemical inputs) that would truly benefit the whole population,the whole economy and also its environment and touristic appeal.
There are many people worldwide(like myself) willing to relocate to SL, mostly digital nomads and people that are attracted to the culture or the climate in SL. The government should rather lower capital deposit requirements(let’s say $10k) and attract people that are interested to live long-term and that spend money to sustain the local economies(farmers,shops,services etc), not real estate projects. Nicaragua has a good program of redirecting money into reforestation programs, but also matched with cultural integration and requirements(like learning spanish) that need to be met in order for having access to longer terms of the residence permits, SL should implement something similar.
Sri Lanka implemented ‘ green energy ” with shortages of gas, Diesel, and electricity. With the regulations on fertilizer also used by the farmers…
With US federal rate hikes, US debt trap has finally kicking in. Expect more countries to collapse under pressure from the american debt trap. IMF will come in forcing more countries to get more US dollar dominated loan which will create a vicious cycle of traps. To get out of these cycles, trade with your local currency or join BRICS+ dedollarizing campaign.
May god bless 🇱🇰 Sri Lankan crisis oh GOD Buddha
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This post smells like advertisement
@Ashish Harsh ad and scam
International community and institutions should not bail out sri lanka
Why?
Srilanka politicians are Roberts and corruption
We will rise one day ….. We love our country.. every time don’t spread negative news. ..create some positivity…. We stand with Sri Lanka.. we will rise …
Though the Fisherman and the Farmer are incurring losses, the middleman makes more the farmer and the fisherman, he is the real Mafia. Minelle should talk about the middleman mafia too. A kilo of fish is sold at 4 times the purchase price and the purchase price is next to nothing. This Mafia is in cahoots with the subject Minister and all those around. Its a vicious cycle.
These problems are created by MR family
The solutions should come from them
Some of their friends still follow their footsteps
Interest rates are 30% not 15% isn’t it
People struggling for survival. Present corrupted politicians are playing with the constitutional terms turning over for their sake.
Side effects of china loan to Shri Lanka …same is happening in Pakistan
So sad. Rajapakshas Rob our money. Give our money back .
Shity people
stop relying on fuel, go back to rowing, unhinge from the US dollar its killing your country