Sri Lanka has declared itself as a low income country after falling from middle income country. The country has lowered itself in hopes of loans from various organizations, including the International Monetary Fund (IMF). The Lankan government has chosen such a strategy to get rid of the ongoing economic crisis. News – Hindustan Times.
Sri Lankan Cabinet Spokesman Bandula Gunawardhan reported this news on Tuesday in the Indian media.
A Lankan cabinet spokesman said the declaration as a low-income country would make it easier to get loans. Representatives of international organizations gave this information to the government.
Bandula Gunawardene said, in view of the financial crisis, the Cabinet meeting approved the declaration of Sri Lanka as a low-income country.
However, the World Bank has not yet commented on this matter.
Incidentally, if a country’s per capita national income is below $1,045, it is considered a low-income country.
In 2021, the per capita income of the island nation was 3 thousand 815 dollars. Then the country was recognized as a low-middle income country. Then Sri Lanka fell into the worst economic crisis this year. Inflation, poor government finances and an economy affected by the corona virus have caused this disaster.
The country’s reserves fell to 2 billion dollars. This results in load shedding; They are facing shortage of food, medicine and fuel. In such a context, the protesters blamed the corruption of President Gotabaya Rajapaksa and his family members. At one stage Prime Minister Mahinda Rajapakse and his brother President Gotabaya Rajapakse were forced to resign.