Question

What were some of the main economic problems found in Sri Lanka immediately after independence?

Answer 1

answer:

Such economies can be beset by high levels of debt, a heavy reliance on foreign capital inflows, a steady depreciation of its currency, and high-interest rates. Sri Lanka has suffered balance of payments (BOP) crises at regular intervals, with the exception of a 9-year period from 1992 to 2000.

The recent changes in the climate have reduced crop yields and crop growth in Sri Lanka due to heat intolerance and water evaporation. This reduces the economic returns to those in the agricultural sector, leading to lower incomes for the individuals affected by these environmental changes.