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A comment on Sri Lanka is having a textbook currency crisis, triggered by policy mistakes. Parent comment

Re:Sri Lanka is having a textbook currency crisis, triggered... by xyzzy123 on Tuesday July 12, 2022 @09:51PM (#32078135)
> cutting supports like this will inevitably doom a sputtering economy, when the actual solution was almost certainly more government spending, not less.

In the US that might be a sensible policy decision but SL can't do that.

The concrete supports that are needed (fuel, fertilizer, food) are bought with dollars and yuan. The government ran out of those, because it was already spending unsustainably to prop up the economy.

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Re:Sri Lanka is having a textbook currency crisis, triggered... by afterburner on Tuesday July 12, 2022 @11:14PM (#32078659)
The government slashed taxes, right when the government needed the money. They were not making an honest effort to support the economy, they were setting up to loot it.
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