Sri Lanka is currently a bankrupt country. The rise of dollar against the rupee has exacerbated the debt crisis.
Commercial borrowing by foreign currency is deadly matter as same have to repay in foreign currency
When the US dollar rise, foreign debt too rise accordingly .
At the end of 2014, the US dollar rose from 131 rupees to 183 rupees under the UNP government.
When the UNP government came to power in January 2015, Sri Lanka’s total debt rose from 7.39 trillion rupees to 12 trillion rupees by the end of 2019.
As the dollar rose under the UNP government, foreign debt increased by 28%.
When Gotabhaya took over the government it was $ 183 and now it is $ 364. Gotabhaya abruptly freed the dollar from control. Accordingly, the dollar rose to 364 rupees per hour. Under Gota’s government, foreign debt increased by 49% due to the depreciation of the rupee
