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Why Sri Lanka Imploded

When Sri Lanka’s Rajapaksa family returned to power in 2019, it was riding a wave of support that it sought to sustain with popular but ill-advised economic handouts. By definition, unsustainable policies eventually run into a wall.

HAMBURG – As Sri Lanka’s economy unravels before our eyes, one must ask how this could happen in a country that is historically known for its high standard of living and stable economy. Sri Lanka’s achievements go back decades, giving it a per capita GDP that is 70% higher than India’s, and a life expectancy at birth of 77 years, compared to 73, 70, and 67, in Bangladesh, India, and Pakistan, respectively.