Sri Lanka's economic crisis may encourage it to strengthen ties with India

In exactly a year since April 2021, the Sri Lanka government’s decision to peg its currency to the US dollar has come back to haunt the island nation. International Monetary Fund (IMF) data shows the economy’s net international reserves have been negative since December last year, and in this fiery April, Sri Lanka has less than a month’s reserve of forex to service a debt of $7 billion. The currency peg has dried up all remittances to add to the vacuum from tourist earnings. A quarter of Sri Lanka’s tourists come from Ukraine and Russia.

In the maelstrom, Sri Lanka