Sri Lanka: Socioeconomic crisis

Sri Lanka faces an economic crisis partly resulting from its twin deficit economy. A twin economy indicates that its domestic expenditure exceeds its national income, making it prone to external debt and reliance on foreign capital flows. The economic crisis is affecting the daily life of the population. Hospitals have reported shortages of medicines, price increases have made food unaffordable for part of the population, and some people have already started to migrate to India to escape the effects of the crisis. Food production in 2022 has also been lower than usual. The measures that the Government has announced to alleviate the crisis in the long term will produce shortterm effects, such as increasing inflation and depreciating the currency. Political instability may also increase.