Analysis and Research on Sri Lanka's National Bankruptcy under the Superposition of Triple Backgrounds
School of Management and Economy, Chinese University of Hong Kong (Shen Zhen), Shenzhen, China
*Corresponding Author: Zihao Wen, School of Management and Economy, Chinese University of Hong Kong (Shen Zhen), Shenzhen, China.
Published: February 02, 2024
In recent years, under the background of the raging of COVID-19, intensified regional conflicts and rising trade protectionism, global economic development has been seriously challenged. Many small countries with a single economic structure have been hit even more severely. Many of them are on the verge of economic collapse as domestic economic and social contradictions have intensified. This paper will analyze the reasons for Sri Lanka's national bankruptcy from three perspectives. It is hoped that more countries in a similar state can be warned and that international economic organizations can identify other countries that may be at risk of collapse more quickly and accurately and provide timely support to reduce economic losses and maintain national security. The paper will use methods such as literature analysis, data analysis and case analysis to try to explain the reasons for Sri Lanka's national bankruptcy. In the end, the article categorizes the reasons for Sri Lanka’s bankruptcy into three points: a) unresolved domestic economic problems for many years, b) three policies implemented under the misjudgment of the new government, and c) the fuse of COVID-19 and the Russian-Ukrainian war.
Keywords: Sri Lanka; Bankruptcy; Government Negligence; COVID-19; Russian-Ukrainian War