Drought dents Sri Lanka’s economic hopes, farmers’ livelihoods

The island's economy was crushed last year by its worst financial crisis in over seven decades, caused by a severe shortage of foreign exchange reserves that triggered widespread unrest and ousted its former president. Helped by a $2.9 billion bailout from the International Monetary Fund (IMF), Sri Lanka has slowly stabilised its economy since March, rebuilding its decimated reserves, moderating inflation and strengthening its currency.

The island’s economy was crushed last year by its worst financial crisis in over seven decades, caused by a severe shortage of foreign exchange reserves that triggered widespread unrest and ousted its former president. Helped by a $2.9 billion bailout from the International Monetary Fund (IMF), Sri Lanka has slowly stabilised its economy since March, rebuilding its decimated reserves, moderating inflation and strengthening its currency.