Sri Lanka crisis: How the island nation descended into chaos; what's next | Explained

Sri Lanka is spiralling into a deeper crisis as protests rage on. Wickremesinghe took charge as the interim President after Rajapaksa resigned, but the turmoil is far from over. Here's a look at how the island nation descended into chaos and what's next.

Violent protests, a debt-laden economy, a President who fled the country and citizens staring at a grim future - that's Sri Lanka today, plunging into deeper economic as well as social crisis with no improvement in sight. As the country is struggling to pay for essential imports, everyday essentials like food and fuel prices are soaring high, enraging the already angry Sri Lankans.

Long known for its dreamy landscape, rich culture and vibrant history, the country is now witnessing a tumultuous present as thousands of protesters storm streets and occupy government buildings holding the government responsible for the deepening economic crisis.

With internal political dysfunction and external economic disturbance, the situation is only getting worse even as Prime Minister Ranil Wickremesinghe took charge as the interim President after Gotabaya Rajapaksa fled the country.

Ill-timed tax cuts, weak government finances, skyrocketing inflation, Covid-hit tourism sector are some of the main factors behind Sri Lanka's present economic crisis.

Analysts say that economic mismanagement by successive governments has weakened Sri Lanka's public finances, leaving national expenditure in excess of income and the production of tradable goods and services at inadequate levels.

Deep tax cuts by the Rajapaksa government in 2019 exacerbated the situation with the Covid pandemic wiping out much of Sri Lanka's revenue base, most notably from the lucrative tourism industry.