Growth and Economic Development in Sri Lanka | Country Profile for 2023

This video provides some context on the economic, social and political crisis facing Sri Lanka - hopefully useful application for Economics students revising growth and development.

#srilanka #macroeconomics #economiccrisis

VIDEO TIMESTAMPS
00:00 - Introduction to the growth and development issues in Sri Lanka
00:33 - Brain drain and loss of human capital in Sri Lanka
01:07 - National per capita income and poverty levels in Sri Lanka
01:28 - Unemployment, inflation, and high interest rates in Sri Lanka
02:32 - Fiscal deficits and national debt in Sri Lanka
03:06 - Comparison of Sri Lanka's per capita income with India and China
03:38 - Corruption and ease of doing business in Sri Lanka
04:13 - Education and development indicators in Sri Lanka
04:48 - Progress in reducing maternal mortality and adolescent birth rates in Sri Lanka
05:21 - Sri Lanka's trading patterns in goods and services
05:55 - Impact of the pandemic on travel and tourism in Sri Lanka
06:26 - Economic crisis and recession in Sri Lanka
06:58 - Fiscal deficits and government debt in Sri Lanka
07:31 - Increase in national debt and debt default in Sri Lanka
08:10 - Rise in borrowing costs and decline in official reserves in Sri Lanka
09:18 - Increase in poverty due to the economic crisis in Sri Lanka
10:21 - Sri Lanka's bailout deal with the International Monetary Fund (IMF)
10:56 - Impact of debt default on the exchange rate of Sri Lankan rupee
11:26 - Consequences of currency depreciation and high inflation in Sri Lanka
12:33 - Effects of economic collapse, corruption, and debt default on development
13:02 - Challenges of over-reliance on tourism and primary products in Sri Lanka
13:40 - Loss of human capital through outward migration from Sri Lanka
14:08 - Importance of remittances, aid, and debt relief for Sri Lanka
14:40 - Consequences of IMF bailout and fiscal austerity in Sri Lanka

VIDEO SUMMARY
Sri Lanka was once a country with high living standards in South Asia but is now facing deep economic, financial, and political crises.
The country has experienced a brain drain, with around 300,000 skilled workers leaving in 2022, which is a significant loss considering the population of just over 22 million.
Sri Lanka has made progress in reducing income inequality, but still, about half the population lives on less than $6.85 a day.
The country is grappling with high inflation, with an unofficial rate potentially exceeding 50%, leading to the central bank raising interest rates.
Sri Lanka has a high level of national debt, over 120% of GDP, and has been running large fiscal deficits, further fueling the debt issue.
Youth unemployment is a major problem, with rates five times higher than the overall unemployment rate.
The economy heavily relies on farming, textiles, and travel and tourism, with a significant decline in tourism due to the pandemic.
The economic crisis has caused a sharp increase in poverty, reversing a decade or more worth of progress in poverty reduction.
Sri Lanka defaulted on its debt, becoming the first Asian economy to do so in 20 years, leading to a significant increase in borrowing costs.
The country negotiated a $3 billion bailout deal with the International Monetary Fund (IMF) to restructure its debt, but the IMF's conditions include fiscal austerity measures and anti-corruption measures.
The economic crisis has also led to a depreciation of the Sri Lankan rupee, causing a fall in living standards and increasing the cost of imports.
Remittances and overseas aid play a crucial role in stabilizing the economy, but Sri Lanka is becoming increasingly dependent on aid and debt relief.
The consequences of the IMF bailout and fiscal austerity measures imposed raise questions about their impact on the Sri Lankan economy.