The immediate reason for the political crisis is the disastrous economic situation facing Sri Lanka’s 22m people. The island’s economy has been in free fall for months
two decades of political domination. An all-party interim government may soon take over. How did Sri Lanka end up in this position?facing the island’s 22m people. Sri Lanka’s economy has been in free fall for months. Tourism, a big source of foreign currency, ground to a halt during the pandemic and had just begun to recover when Russia’s invasion of Ukraine, making imported fuel and food harder to afford.
External shocks have played a part in the crisis. But the main culprit, and the main reason for the protesters’ anger, is government mismanagement. An earlier Rajapaksa government led by Mahinda, Gotabaya’s brother, borrowed heavily to finance infrastructure projects, such as a fancy port development, that have yet to generate returns. The most recently disgraced government, led by Gotabaya, slashed taxes, which bashed treasury revenue just before the pandemic halted tourist arrivals.
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