EXPLAINER: Why Sri Lanka’s economy collapsed and what’s next

By KRISHAN FRANCIS and ELAINE KURTENBACH
Associated Press

COLOMBO, Sri Lanka (AP) — Sri Lanka’s prime minister says the island nation’s debt-laden economy has “collapsed” as it runs out of money to pay for food and fuel. The country is seeking help from neighboring India and China and from the International Monetary Fund. Prime Minister Ranil Wickremesinghe, who took office in May, was emphasizing the monumental task he faces in turning around the economy as it nears, he said, “rock bottom.” Economists say the crisis stems from domestic factors such as years of mismanagement and corruption, but also from other troubles such as its $51 billion in debt, the pandemic and terror attacks. Getting the economy back on track will take time.