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Why Sri Lanka imploded so catastrophically

Published by
The Bangkok Post

As Sri Lanka’s economy unravels before our eyes, one must ask how this could happen in a country historically known for its high standard of living and stable economy. Sri Lanka’s achievements go back decades, giving it a per capita GDP that is 70% higher than India’s, and a life expectancy at birth of 77 years, compared to 73, 70, and 67, in Bangladesh, India, and Pakistan, respectively. But now Sri Lanka’s economy is in free fall. The proximate causes of the crisis are clear enough. Problems stemming from international factors such as Covid-19 and Russia’s war in Ukraine were exacerbated by …

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