Sri-Lanka Economic Crises: In view of one of the worst economic crises hitting the country, Sri Lanka government on Tuesday approved a proposal to set up an institute to educate parliamentarians and government officials to make informed decisions on economic and trade affairs.
The proposal to set up the Sri Lanka Economic and Trade Institute was initiated by the President Ranil Wickremesinghe and was approved by the cabinet. According to government spokesman Bandula Gunawardena , “This will help them to make informed decisions on policy formulation,” . According to analysts, Sri Lanka’s worst economic crisis that besieged the country this year, could have been avoided if informed decisions were taken by the government in 2020.
The Island nation witnessed its worst economic crises earlier this year forcing the country to declare its first-ever sovereign debt default. The country faced a severe shortage of foreign reserves, which caused it to declare its international debt default in April this year. This resulted in a public outcry against those in power, as analysts reflected that the crisis could have been averted if “informed decisions” had been taken around 2020.
Although some normalcy is being witnessed with a surge in tourism due to Christmas and New Year season, Sri Lanka is negotiating a bailout with the IMF to bring back its economy on the track.