7 months ago
Sri Lanka is a small coastal country and it’s economy is mostly dependent on 2 things:
Tourism : Tourism contribute around 15% GDP to Sri Lanka economy and it was completely ruined by Covid-19 from 2020 to December 2021.
Because of border closed, no tourists were coming to Sri Lanka. This completely hampered the economy as all hotels were closed and millions of people lost their jobs which were dependent upon hotel or restaurant industry.
Since no tourists were coming to Sri Lanka, Sri Lanka lost all the Forex income which were coming through those international tourists.
Agriculture : Agriculture contribute around 10% GDP to Sri Lanka economy and it was completely ruined by government in 2021 when Sri Lanka government banned import of all fertilizers and asked it’s citizen to completely go for organic forming. Organic forming is very expensive and it reduces the production by 30%.
Because of this less production hampered the economy and it forced Sri Lanka government to spend a lot of money on importing agricultural products from other nations.
Corruption : Top leadership was very much corrupt and 50% of cabinet ministry was under one family which is very dangerous for any country.
China : Srilanka have taken a huge Loans from China and it was trapped by China by doing unnecessary development.
Lessons to learn from Sri Lanka:
Create Multiple Source of Income: Do not depend too much on those things which are related to other nations. We must always create inhouse products and services which can generate multiple source of Income.
For example: Sri Lanka was too much dependent upon foreign tourism which is very volatile as it can be easily stopped in some situations like COVID and other reasons.
Spend on Research & Development: Do not take any decision which impact your production for anything without proper data analysis. Before taking decision about anything, there should be Research & Development and it should be practically tried and tested on small scale before implementing on larger scale.
India Economic condition:
Now let’s see about India.
India is very big country and Indian economy is mostly dependent on 3 things:
India has a lot of big businesses which are doing huge exports to other nations and earning a lot of Forex reserves.
Senior Software Engineer at Amazon Hyderabad
7 months ago