The economic depression of third-world countries is a complex issue. Many factors contribute to it, but it is essential to simplify the issue to understand the visible factors. Sri Lanka is a prime example of a third-world country experiencing economic collapse. The outbreak of Covid-19 led to unexpected economic collapse worldwide. However, economically stable countries could cope with this situation easily. They had better-prepared healthcare systems, vital social welfare programs, and robust financial systems. In contrast, third-world countries like Sri Lanka lack adequate resources and infrastructure.
Covid 19 is the reason for the collapse of the economy
The economic effects of COVID-19 are still prevalent in many third-world countries, including Sri Lanka. The pandemic has caused a significant decline in tourism, a crucial revenue source for the country. Additionally, the pandemic has disrupted global supply chains, affecting the country’s export industry.
Furthermore, Sri Lanka was already facing economic challenges before the pandemic. The country has high external debt, a weak currency, and an inefficient public sector. These challenges have been further exacerbated by the pandemic, leading to a deepening economic crisis.
Currently, economically stable countries are gradually recovering from the pandemic’s effects. However, it is difficult to predict when Sri Lanka will stabilise back to its pre-Covid state. The country needs significant support and investment to recover from the economic crisis.
Population growth is very high
“What were the primary factors that led to the economic collapse of Sri Lanka? One of the significant contributing factors is the current population growth. The population growth rate in Sri Lanka has been consistently high over the past few decades. Since 1977, the government has not made any substantial efforts to control or understand this issue. The rapid increase in population has led to a surge in resource demand, leading to a strain on the country’s economy. This situation has also caused a rise in unemployment rates, further exacerbating the economic crisis.
Population growth had to be controlled
Sri Lanka’s population growth has been a notable issue in the last four decades. However, the extent to which this growth has become a crisis has yet to be discovered. According to the 1971 census, the population of Sri Lanka was around 12 million. Over the next fifty years, the population has grown by ten million people, resulting in a total population of 22 million in 2022.
To provide more context, Sri Lanka’s population was 4.4 million in 1921. By 1971, this number had increased to 12 million, indicating an increase of almost eight million people over a fifty-year period. The current population growth rate in Sri Lanka is approximately 0.7%.
A small country of 65000 km
The issue of population growth is of great significance for any country. The size of the population that a country can sustainably support has a direct impact on its economic development. Therefore, it is crucial to control the population based on the country’s size and resources.
Sri Lanka, for example, has an area of 65,000 square kilometres. However, not all of this land is available for human habitation. To determine the amount of land available for people to live on, we need to deduct the areas covered by forests, cultivated lands, and water bodies. This calculation will accurately estimate the land area that can support human habitation and development.
It is important to note that population density per square kilometre is not the only factor to consider. The challenges of providing necessary facilities to the growing population are a crucial factor in the decline of any society. As a country’s population grows, the demand for infrastructure, healthcare, education, and other basic amenities also increases. If the government fails to provide these essential services, it can lead to social and economic problems.
Therefore, managing population growth carefully and sustainably is essential, considering factors such as available resources and land area. This approach will help to ensure that a country can provide for its citizens’ basic needs and maintain its economic development.
It was caused by bad economic management
Sri Lanka’s current economic situation is a result of a long-standing approach to development that has relied heavily on borrowing from foreign entities. The country has been borrowing from the world to provide the necessary facilities for its growing population, such as infrastructure, education, and healthcare. While borrowing has allowed Sri Lanka to undertake development projects that are necessary for its citizens, it has also come at a significant cost.
Sri Lanka’s external debt has increased steadily over the years, and the country is now in a severe economic crisis. The government’s reliance on borrowing has led to a situation where it is struggling to service its debt obligations, with the debt-to-GDP ratio reaching 100% in 2020. The COVID-19 pandemic has only exacerbated this situation, with the country’s tourism industry, a significant source of foreign exchange, coming to a standstill.
The government’s focus on borrowing as an easy and profitable solution has meant that there needs to be more emphasis on developing industries and creating jobs that would generate income within the country. This has led to a situation where Sri Lanka is heavily dependent on foreign currency inflows to sustain its economy, making it vulnerable to external shocks.
People do not understand this
To sustain a growing population, it is essential that any country has the necessary resources to support it. This is true for Sri Lanka as well. The country is currently facing the challenge of producing enough food for its population, which has been steadily increasing over the years.
Economists widely understand that an increase in demand can significantly impact the economy. The same is true for Sri Lanka, where demand for food has been increasing due to population growth. To meet this demand, Sri Lanka needs at least three times the amount of cultivable land currently available in the country.
In light of this, it is essential to determine the optimal population size that Sri Lanka can sustain. A country the size of Sri Lanka can support a population of between ten and twelve million people. This is based on the amount of cultivable land available in the country, which is sufficient to produce enough food for this population.
It is worth noting that rice is a staple food for many Sri Lankans and a major contributor to the country’s food security. According to reports in 2021, the average rice consumption per person in Sri Lanka is 191 kg, which is for a population of around 22 million. This highlights the importance of cultivating enough land to meet the growing demand for rice.
Furthermore, it is interesting to note that rice consumption has increased significantly in Sri Lanka over the years. In 1993, the average rice consumption per person was 83 kg for a population of around 15 million. This demonstrates that the demand for rice has been steadily increasing in Sri Lanka, making it all the more important for the country to focus on sustainable agriculture practices and food security to support its growing population.
Not enough is grown for consumption
According to the latest statistical data, Sri Lanka is expected to produce approximately 3.39 million tons of rice in 2022. This raises the question of how many people can be fed with this amount of rice for the entire year.
Based on an average consumption rate of 200 kg of rice per person per year, this production amount would be sufficient to sustain only 16.5 million individuals. This estimate indicates that if Sri Lanka’s population is around 16 million, then the country would not need to import rice from other countries.
If these facts are applied to other crops that can be grown in the country, a similar situation can be observed. Let’s analyse this situation for other goods and services later.
Considering this situation, it is clear that the country cannot control the economy due to an unsustainable population. When there is no supply according to the demand, taking foreign loans to meet the foreign market becomes necessary. It is difficult to bear the amount of debt that Sri Lanka has taken so far. The future of Sri Lanka will be challenging if the economy is thought to oscillate on the debt in a short-sighted manner.
Conclusion
Looking at this challenging situation, Sri Lanka should try to control population growth as soon as possible. If this is started from now, the country can be brought to some stability after another thirty years. This is a challenging task. Even now, this problem has gone beyond control. Talking about population control in a multicultural country like Sri Lanka is also a difficult task. Think ahead. A dangerous situation will arise if another ten million people are added to the country’s population in the next fifty years.
