Entangled in its worst economic crisis ever, Sri Lanka has seen mass protests around the country. Some experts believe that the road to recovery for the island nation is painful, but "it has an end."
What Happened: The turmoil in the country is the product of years of political corruption, and government mismanagement, which led to massive levels of foreign debt and the collapse of its currency, American-German legacy investor Mark Mobius wrote in a blog post after visiting the country to gain the first-hand experience.
Mobius further added that “the pandemic and the Ukraine war, which further exacerbated out-of-control consumer prices, simply helped set off a ticking time bomb.”
Sri Lanka’s Presidential Palace and other government offices were stormed by protestors but Mobius said, “street demonstrations were still peaceful, and power outages were few and far between.”
According to Mobius, Sri Lanka’s ousted President Gotabaya Rajapaksa's resignation was critical for getting the nation “back on its feet.”
“In fact, for Sri Lanka to get out of this mess, a complete change in the leadership is essential. There needs to be a radical change in the political structure of the country for confidence to be restored not only among the population but also among foreign investors and international organizations,” he added.
Mobius also expressed faith in the ability of Sri Lanka to overcome the difficulties, with “an internal strength in the peaceful character of the people.”
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