Bankrupt Sri Lanka economy shrinks 1.6pc in first quarter

COLOMBO, June 29 (AFP): Sri Lanka's economy shrank 1.6 percent in the first quarter of this year as an unprecedented financial crisis began to impact commercial activity, according to official data.
The island nation's painful downturn has seen months of lengthy blackouts, runaway inflation and severe shortages of vital consumer goods.
A shortage of foreign currency needed for the import of fuel, fertiliser and other essentials had a devastating effect on the economy just as the coronavirus pandemic was receding.
The January-March contraction was worsened by the "adverse effects" of inflation and Sri Lanka's crashing currency, the statistics department said.