[LISTEN] Sri Lanka’s economic crisis – lessons for civil society

Gerhard van Onselsen
Gerhard van Onselsen

Gerhard van Onselen (strategist at Sakeliga) talks to James Kemp about the current events in Sri Lanka.

This follows a recent talk at KragDag 2022 by Russell Lamberti (economist and executive director at Sakeliga) on the reasons for the deterioration and current economic crisis in Sri Lanka.

Prices in Sri Lanka have gone through the roof and several products, including fuel, have been rationed. Poverty and suffering are to be seen everywhere.

Lamberti gave several reasons for the crisis in Sri Lanka, including excessive foreign debt, internal instability and large-scale government corruption, a central bank that prints lots of money, and outrageous regulations that were carried to an extreme following the Covid-19 restrictions. These factors are discussed in greater detail.

There are important lessons to learn from the recent Sri Lanka case. Lamberti is of the opinion in particular that it is essential to ensure a state-proof civil sector so as to curb reckless government actions such as those seen in Sri Lanka.