Sri Lanka’s problems are, in many aspects, unique to its situation and self-inflicted. Yet the astonishing collapse of the country is also inextricably linked to a wider, interlocking series of The World Bank Group and Sri Lanka. The World Bank Group has been a trusted development partner for Sri Lanka for over six decades. Throughout the 60-year partnership, Bank Group’s financing, analytical work, and advisory services have contributed to Sri Lanka’s developmental roadmap, balancing opportunistic engagements with a long-term focus on fiscal sustainability, competitiveness, and Dozens of poor families from Sri Lanka have fled to southern India over the past few weeks amid an acute economic and political crisis gripping the Indian Ocean island nation.. The country of 22 Debt and economic crises can set back decades of gains in per capita incomes and poverty reduction in developing countries. Once cited as a success story in the developing world for meeting basic human needs for a low-income country as early as the late 1970s, Sri Lanka is in the midst of the worst debt and economic crisis since independence in 1948. Sri Lanka's economy faces significant challenges, including a high external debt burden, a trade deficit, fiscal imbalances, and currency depreciation. The COVID-19 pandemic worsened these issues by disrupting global supply chains and tourism revenues. Political instability and governance problems have hindered economic reforms. 5. Nepal – Int$ 4,199. The fifth poorest country in Asia and 152nd in the world is Nepal, with growing public debt of 26.4% of GDP. Out of the total population of 30,424,878, about 3% are unemployed, of which 21.4% are 15 to 24 years old. Moreover, approximately 25% of the population is below the poverty line. Footnote 136 With the arrival of the British as the colonial power of the country, Sri Lanka’s colonial and post-colonial history was changed profoundly with implications on its population, laws and institutions. Footnote 137 The British changed and altered the face of the country. Most importantly the British introduced liberal values to the The political situation has been extremely volatile since 2022, when Sri Lanka was rocked by a political crisis known as the “Aragalaya” (or “struggle”). This huge wave of protests led to the fall of the Rajapaksa family, headed by then-President Gotabaya Rajapaksa, who fled the country in July 2022. During his brother’s yFOk33u.