Samarth Pandya @casamarthp...
Thiking about the reason behind collapse of Sri Lankan Economy
Samarth Pandya @casamarthp...
1. 70% of sri lankan economy is tourism based. Blasts in 4 churchs in 2019 destroyed entire tourism income.
2. COVID in 2020.
3. Reduction of VAT rate from 15% to 8% thinking that It will improve purchasing power of citizens but it impacted on govt.'s treasure. Spend of people could not increase but income of govt by VAT was lost.
Samarth Pandya @casamarthp...
4. Part economy of sri lanka was dependant on agri. of Tea ,coffee and tobacco which were grown using imported fertilizers and chemicals. Govt. ban import of such fertilizers and chemicals to promote in house and save foreign currency on import. But all of Sudden COVID happen and they could not execute in house production.Thats how their partial agri. business also beaten.
