Sri Lanka is in a death spiral – Economist

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The Sri Lankan economy is in a “death spiral”, says world-renowned economist Steve H. Hanke, a professor of applied economics, at Johns Hopkins University in Baltimore.

He said in a Twitter message that this was the first time Sri Lanka had defaulted on a debt.

Hanke pointed out that since 1 January 2022, the Sri Lankan rupee has depreciated by approximately 50% against the US dollar.

He stressed that the Central Bank should be abolished and a Currency Board must be installed to save the Sri Lankan economy from this death spiral.