what is forex crisis in sri lanka 2022

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Sri lanka potensial market

Sri Lanka , officially the Democratic Socialist Republic of Sri Lanka, is an island country in South Asia with a population of 21,67 Million Potential Forex Traders.  According to the International Monetary Fund, Sri Lanka’s GDP in terms of purchasing power is the second-highest in the South Asian region and the country is famous for its production and export of cinnamon, rubber, and Ceylon tea, which remains a trademark national export.

What is forex crisis in sri lanka ?

Through this post "What is forex crisis in sri lanka" you can under stand the situation of Sri lanka. Sri Lanka is going through the worst economic phase in history, the country's foreign exchange reserves have been depleted and a mountain of debt taken from many countries including China has arisen, the condition is that the government has raised its hands in the matter of repayment of foreign debt. And according to the report, there will be no business for 5 days in the stock market of the country.

Sri Lankan stock market will be closed for 5 days next week The Securities Commission of Sri Lanka has issued an order to keep the Colombo Stock Exchange closed from April 18 to April 22. will have time to understand the situation.

A major part of Sri Lanka's income comes from tourism. About half a million Sri Lankans directly depend on tourism, while 200,000 are indirectly linked to it. Tourism contributes more than 10% to Sri Lanka's GDP annually. Tourism brings about $ 5 billion in foreign currency to Sri Lanka, this third of the foreign currency for the country. There is a big source but the tourism sector got slapped due to the epidemic of compassion.

Activity was also affected in the covid 19, more government spending and tax cuts also reduced revenue The World Bank estimates that since the beginning of the epidemic, 500,000 people have come below the poverty line, which is equal to 5 years of progress in fighting poverty. Being forced to leave due to lack of employment.

The country has to repay domestic and foreign debt of $ 7.3 billion (about 54,000 crore Indian rupees) in the next 12 months. China accounts for about 68% of the total debt. He has to pay 5 billion dollars (about 37 thousand crore rupees) to China. Last year, it had taken an additional $ 1 billion (about 7 thousand crores) loan from China to help deal with the serious financial crisis, which is being paid in instalments.

FAQ's

Q: What is the forex crisis?

Ans:  Forex Crisis, we speak only this, where after country the foreign reserve is exhausted or very less, the foreign reserve works to make a country capable and rich, as we know today we have to live in the market of another country. Cooperation is needed To meet this need of cooperation, we keep a forex reserve so that if we have to import something from any country, then we can pay it in dollars.