Economic pressures and the fallout from the Ukraine war push Sri Lanka to the brink.

Sri Lanka is the first nation to be critically affected by a global debt crisis exacerbated by the ongoing conflict between Russia and Ukraine. Amid weeks of unrest and a deepening economic collapse, Prime Minister Mahinda Rajapaksa’s resignation marked a turning point. The country, facing a dire financial situation with only $50 million left in its reserves, is seeking a bailout from the International Monetary Fund (IMF). This intervention, however, will come with stringent reforms. The crisis is not an isolated event; rather, Sri Lanka represents a warning for other low- and middle-income nations. A global trifecta of challenges—pandemic fallout, soaring debt, and surging food and fuel prices—has pushed many economies into a precarious position, signaling that Sri Lanka may not be the only country to fall victim to these compounded pressures.