Sri Lanka’s Economic crisis and its lessons for India

By Ritvik Vanukuru

An unprecedented Economic and Political Crisis struck Sri Lanka due to a series of economic and Geopolitical decisions that, in turn, led to a domino effect on the country as a whole.

This scenario presents to us with several learning lessons for India, starting with the economic front with the forex reserves and the external debt owed. This segment should always remain on a balanced scale to avoid any pressure and repercussions from abroad. The Rupee Depreciation against the dollar is another factor that needs to be kept under control to avoid untoward situations.

On the Political and Federal front, we see that irresponsible decisions and announcements of freebie schemes often lead to harmful circumstances for the country. A holistic overview of the country should always be done from within to tackle such crises.