Posted on 26 April 2022
Sri Lanka, a country of 22 million people, is struggling to pay for imports amid a crushing debt crisis and sharp drop in foreign exchange reserves that has fueled soaring inflation. Prolonged power cuts and shortages of fuel, food and medicines have sparked nationwide protests. Sri Lankans here in Aotearoa have been raising awareness of the issue, while in Sri Lanka police opened fire on people protesting fuel price increases, killing one and injuring 13 others.
World Bank is preparing an emergency aid package, and the International Monetary Fund held discussions on its loan request. Sri Lanka is the first to default on its debt in the current global economic crisis, but it may not be the last.