An article posted on the popular Chinese portal NetEase (January 3) said that half a million people in Sri
Lanka have been thrown into poverty since the outbreak, and rising costs have forced many to cut back on
food. The country is now facing a deepening financial and humanitarian crisis, with fears it could go bankrupt
in 2022 as inflation rises to record levels, food prices soar and state coffers dry up. It quoted Britain's
"Guardian" as saying "Sri Lanka faces many pressing problems, one of which is the huge external debt burden,
especially to China. It owes China more than 5 billion US dollars (about 31.7 billion yuan) in debt. It has
secured a $1 billion loan to help it deal with the severe financial crisis, which is currently being repaid in
amortizations.” The article added that the situation was so dire that there were long queues at passports as
one in four Sri Lankans, mostly young and educated, said they wanted to leave the country. For older citizens,
it's reminiscent of the early 1970s, when import controls and low domestic production led to severe shortages
of basic goods and long queues for bread, milk, and rice. It quoted WA Wijewardena, the former Deputy
Governor of Sri Lanka's central bank, as warning that the struggles of ordinary people will exacerbate the
financial crisis, which in turn will make their lives more difficult. He said, “When the economic crisis
worsens to the point of no return, there will inevitably also be a financial crisis in the country. Both will reduce production and will be unable to import due to a shortage of foreign exchange, thereby reducing food
security. At that time, this will It's a humanitarian crisis."
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