SaralnamaIn 2025, Sri Lanka faces a tough economic recovery after its 2022 financial collapse caused by heavy debt and poor management. The government secured $3 billion from the IMF and restructured debt with countries including India, China, and Japan. Despite electing a new government in September 2024, austerity measures continue, affecting farmers, fishermen, and workers. Many people skip meals due to food shortages, and public spending on health and education remains very low compared to debt payments. The crisis reflects a wider problem in many developing countries, where debt repayments exceed spending on basic needs. Global South nations are demanding fairer debt solutions. In September 2025, Sri Lanka will host a global forum in Kandy to discuss food sovereignty and debt issues, aiming to find alternatives that protect people’s rights and livelihoods. (Updated 29 Aug 2025, 21:08 IST; source: link)
Key Points
- In 2025, Sri Lanka faces a tough economic recovery after its 2022 financial collapse caused by heavy debt and poor management
- The government secured $3 billion from the IMF and restructured debt with countries including India , China , and Japan
- Despite electing a new government in September 2024 , austerity measures continue, affecting farmers, fishermen, and workers