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The government in crisis-stricken Sri Lanka has said it will print more money and cut spending on infrastructure as part of an attempt to pacify the restive population. The government, however, concedes that printing more money will likely see the inflation rate rise to 40%. <\/strong>\n<\/p>\n \n As per remarks published<\/a> in the Business Standard, Wickremesinghe concedes that injecting one trillion rupees into circulation may lead to more hardship and further turmoil in the country. Nevertheless, the recently installed prime minister insisted the reforms being undertaken by his government are intended to improve the welfare of the population.\n<\/p>\n Looking at the hard days ahead, there have to be protests. It\u2019s natural when people suffer, they must protest. But we want to ensure that it does not destabilise the political system. With the interim budget, it is just about cutting down expenditure, cutting to the bone where possible and transferring it to welfare.<\/p>\n<\/blockquote>\n \n \n<\/p>\nPrinting More Money as the Solution<\/h2>\n
\nAfter defaulting on its obligations for the first time, the government in crisis-hit Sri Lanka now expects the country\u2019s inflation rate to top 40%, Prime Minister Ranil Wickremesinghe has said. With the country now facing a steep revenue shortfall, authorities have said they intend to print money worth nearly $2.8 billion (one trillion rupees) which will be used to partly fund the government welfare programs.<\/p>\n\n
\nAccording to the Business Standard report, Sri Lanka\u2019s economic woes were triggered by the Covid-19 pandemic, which ruined the country\u2019s tourism industry. Some critics have, however, placed the blame on President Gotabaya Rajapaksa\u2019s government, which approved tax cuts they argue caused the income flowing into government coffers to drop further.\n<\/p>\n<\/p>\nSri Lanka\u2019s Debt Default<\/h2>\n