The President's Prime Minister announced his resignation. How did Sri Lanka come to this step?

Sri Lanka's problems have external factors, internal factors, the influence of natural disasters, and human impact.

According to Sri Lanka media reports on the evening of July 9, President Rajapaksa has notified the speaker Abvadner that he will resign from the president on July 13. On the same day, the Prime Minister Vikramainha said he would resign. In recent months, Sri Lanka has faced issues such as lack of foreign exchange, high prices, and tight power supply and oil supply. Protestants have continuously launched demonstration protests to ask the government to quickly resolve the economic crisis facing the country.

Rajapaksa information map

How did Sri Lanka come to this step? How will you face the dilemma? Where will its political situation go?

Frozen three feet is not a day cold. Sri Lanka's problems have external factors, internal factors, the influence of natural disasters, and human impact.

The long -term civil war caused Sri Lanka to carry a large amount of foreign debt, and domestic construction lags for a long time. Its economic pillar is mainly exported by tea, rubber, coconut and cinnamon, and the overseas Chinese exchange of tourism and overseas workers is also an indispensable part. As the rice of the main grain, it is not much attention, and it is basically swaying between self -sufficient self -sufficiency and importing supplement.

This can be maintained in the case of normal economic operation. Once the chain is interrupted, the crisis will come.

The new crown epidemic first seriously impacted the very important tourism industry, and the overseas Chinese exchange of overseas workers was also greatly affected. House seemingly endless rain. Earlier this year, the climate of the Indian Ocean was abnormal, which caused long -term droughts, which directly led to the fact that the self -funded rice and vegetables were seriously reduced to reduce production and had to rely on imports. The original power supply was 40%of the water and electricity, which was rapidly reduced to the floor level due to drought. In addition, the tension of the world situation has created high energy prices, and a heavy blow on Sri Lanka, which is seriously dependent on imports ...

However, the most terrible is the economic policy of the Sri Lanka administration.

After Rajapaksa came to power, two most noticeable things were done, one was to pursue the "modern monetary policy theory", and the other was to promote the promotion of organic agriculture across the country. These two actions, especially the latter, are called "self -disconnected economic policy" by the latter.

The two central bank governors before and after Sri Lanka believe that there is no need to worry about the issue of government debt, and what needs to be done is "increasing the proportion of domestic debt." In other words, the government can rest assured to expand their expenses and use fiscal deficit to support employment and funding public products. As a result, it was not surprising that the inflation level of food categories in the country exceeded 20%, while foreign exchange reserves plummeted by about 70%.

At this point, the thinking of tightening the trouser belt is not completely expected to deal with the imminent foreign debt problem. Some countries have expressed their willingness to assist Sri Lanka over crisis.

However, the expectation of the last debt -agricultural products also had problems.

In October last year, the country suddenly introduced a tough "organic agricultural order", ordering agricultural production to prohibit the use of chemical fertilizers and pesticides. Organic agriculture is the direction of the future, but it is so important and not completely mature technology. Even if it is to be implemented, there must be a process, and a large number of advance investment is required as a pavement. In this way, the output of agricultural products that can repay debt also dropped to the floor level.

Therefore, the foreign debt can't afford it, so it is impossible to borrow new debts, but the demand for food imported from foreign exchange is rising quickly ...

At this point, the president and prime minister of the country can not announce the resignation. Who can come to clean up this endgame? The people of Sri Lanka are waiting to see.

Source: Red Star News

Edit: Weekend

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