Written by 1:46 pm Background Note, Debt Update, Insights, Policy Briefs, Research Briefs, Research Reports Views: 2


Tourism Could Not Have Solved Sri Lanka’s Foreign Exchange Crisis

A key debate during Sri Lanka’s economic crisis is whether the current dollar shortage is a short-term liquidity problem or a more protracted and systemic issue that requires debt reduction. This insight responds to the view that the dollar shortage is a short-term liquidity problem primarily caused by reduced tourism revenue since the onset of COVID-19. As this insight describes, there are three reasons to be skeptical of this argument.



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Last modified: December 5, 2023

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