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    Sri Lankan economic crisis worsens as country defaults on its debt payments; experts discuss the road ahead

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    Sri Lankan economic crisis worsens as country defaults on its debt payments; experts discuss the road ahead

    Mini

    Days after Ranil Wickremesinghe took over as the Prime Minister of Sri Lanka and President Gotabaya Rajapaksa won the vote of confidence from opposition parties, the economic crisis in the island nation is only worsening. The country has defaulted on its debt for the first time in its history as the government runs out of cash. Angry and uncontrollable crowds are protesting on the road as they fight for food, medicine, petrol and electricity. Inflation has risen to nearly 30 percent with food prices up 46.6 percent year-on-year.

    Days after Ranil Wickremesinghe took over as the Prime Minister of Sri Lanka and President Gotabaya Rajapaksa won the vote of confidence from opposition parties, the economic crisis in the island nation is only worsening.
    The country has defaulted on its debt for the first time in its history as the government runs out of cash.
    Angry and uncontrollable crowds are protesting on the road as they fight for food, medicine, petrol and electricity. Inflation has risen to nearly 30 percent with food prices up 46.6 percent year-on-year. India is standing by its neighbour in these times of crisis.
    Sri Lanka will start to receive consignments containing rice, milk and medicines worth USD 16 million. Additionally, India has also allowed settlement of trade transactions with Sri Lanka in Indian rupees as the country runs out of dollar reserves.
    An International Monetary Fund virtual mission to Sri Lanka is expected to conclude technical talks on a potential IMF loan program. The G7 nations have committed to assist Sri Lanka in securing debt relief.
    Prime Minister Wickremesinghe urged for continued engagement by the international community to overcome the economic crisis.
    So what lies ahead for the island nation? Will the crisis be resolved anytime soon? And what steps should the government take to tackle the unrest? To discuss this CNBC-TV18 spoke to Sagala Ratnayaka, Former Cabinet Minister of Sri Lanka; Kabir Hashim, MP from SJB Sri Lanka; Mandana Abeywickrema, Sri Lankan Journalist and Umesh Moramudali, Economist at University of Colombo.
    Watch accompanying video for entire discussion.
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