BS Number Wise: From bad to worse, tracking Sri Lanka's economy

The country is drowning in debt and the currency can buy little in a worsening crisis

Latin American economies suffer from “the curse of El Dorado”: they have the resources but development eludes them. Sri Lanka and Pakistan seem fated to become South Asia’s El Dorados. Their economies were already shaky when the coronavirus pandemic exacerbated the crisis.

Between 2019-20 and 2021-22, India’s domestic and foreign debt increased by 35 per cent. In the same period, Sri Lanka’s gross borrowing increased 33 per cent and Pakistan’s by 30 per cent — both countries are drowning in debt.

Sri Lanka is scheduled to hold talks this month with the International Monetary Fund (IMF) for loans. While India’s