4.3.3. Economic Focus on Sri Lanka (Edexcel A-Level Economics Teaching PowerPoint)

This teaching powerpoint for Edexcel covers the economy of Sri Lanka

Sri Lanka's economic crisis has a few key causes:

• Foreign debt: Sri Lanka has a large external debt burden, which became unsustainable due to a decrease in foreign currency reserves and a decline in tourism revenues during the pandemic.
• Mismanagement: The government's policies, including fiscal mismanagement and unsustainable foreign borrowing, contributed to the crisis.
• Trade imbalance: Sri Lanka has a persistent trade deficit, which means it imports more goods and services than it exports, leading to a shortfall in foreign currency reserves.
• Poor investment climate: The country's political instability, corruption, and lack of transparency have deterred foreign investment.
• COVID-19: The pandemic exacerbated pre-existing economic issues, leading to a decrease in tourism, remittances, and exports.