Inflation in Srilanka
Inflation can be defined as increase in General level in an economy. Inflation results decrease in Purchasing Power of an individual.
Inflation Overview
Let's take the example of inflation. Before 10 Years I could bought samosa and chowemin with RS 20 but Now in present context , I can't even get chowemin in Rs 20 also not Samosa. This is inflation. Here the general price level has increased.
Inflation in Srilanka
Srilanka doesn't have Money , It doesn't have Food , Exams has been cancelled , Critical surgery has been cancelled. But why ? Why inflation took place in Srilanka ?
Because of Trade Deficit
Trade deficit means more imports and less export. Srilanka imports more goods from other's country. It Completely depends upon other country for Consumers Goods too.
Because of More debts
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Srilanka Have more debts. It's Expenditure are more than savings which results inflation.
Above were the main causes of inflation in Srilanka.
What Srilanka did after financial crisis
Srilanka asked help from neighborhood country and Got helped from it's neighborhood country like India and Bangladesh. After getting help also srilanka couldn't sustain.
Hero One dollar = 335.87 Srilanka Rupees
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