Sri Lanka economy in crisis as debt mounts, reserves dwindle

Sri Lanka has cut back on imports of motorcycles, farm chemicals and even its staple spice turmeric as its foreign exchange reserves dwindle, hindering its ability to repay a mountain of debt

COLOMBO, Sri Lanka -- Sri Lanka has cut back on imports of farm chemicals, cars and even its staple spice turmeric as its foreign exchange reserves dwindle, hindering its ability to repay a mountain of debt as the South Asian island nation struggles to recover from the pandemic. Toothbrush handles, venetian blinds, strawberries, vinegar, wet wipes and sugar are among the hundreds of foreign-made goods that were banned or made subject to special licensing requirements meant to chip away at a trade deficit that has been deepening the country's financial quandary for years. Shortages are pushing prices higher for many consumer goods, from bread to construction materials to gasoline, triggering protests among Sri Lankans fed up with the prolonged crisis. Thusitha Vipulanayake ran out of motorcycles to sell in August 2020. Usually able to sell at least 30 a month, and a dozen motorized trishaws, he now gets by selling bottled, locally grown turmeric paste and LED lightbulbs.