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Sri Lanka Crisis Effect: Will the economic crisis of Sri Lanka affect Indian companies too? know news

Sri Lanka Crisis Effect on India: The share of Sri Lanka in India’s export-import business is only 0.64 percent. Giving this information in a report by rating agency Crisil, it has been said that the deepening economic crisis in Sri Lanka has no effect on domestic companies. India’s export-import business has crossed the $1,000 billion mark in the financial year 2021-22.

Sri Lanka defaulted in repayment of foreign loan
Significantly, Sri Lanka has been facing a crisis since March after a decrease in foreign exchange reserves. Sri Lanka defaulted on all foreign debt payments of $ 44 billion last week due to depleting foreign exchange reserves.

Schools, newspapers closed in Sri Lanka, food rationing continues
The crisis in Sri Lanka is so dire that its schools are closed for lack of notebooks and ink, newspapers have stopped publishing newspapers, and the Indian Ocean-based nation has rationed food, fuel and electricity. Sri Lanka is largely dependent on tourism. In the year 2019, Sri Lanka was heavily bombed by Islamic militia on the occasion of Easter and after that now this country is facing the havoc of the epidemic.

Sri Lankan rupee in heavy fall against dollar
Apart from this, the Sri Lankan rupee, whose value was 195 on a US dollar before the crisis, has come down sharply to about 325 Sri Lankan rupees per dollar at the present time.

Sri Lankan President admits mistake
Sri Lankan President Gotabaya Rajapaksa has admitted that he made mistakes that plunged the country into its worst economic crisis in decades. The President also resolved to rectify his mistakes. Rajapaksa on Monday formed a new cabinet of 17 ministers, in which his brother Prime Minister Mahinda Rajapaksa is the only member from his family. The President admitted his mistake before the new cabinet.

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