Sri Lankan syndrome and Nepal

An economic crisis like in Sri Lanka is inevitable, if Nepal ignores its early symptoms.

There is growing speculation that the Nepali economy will disintegrate like in Sri Lanka as the country's foreign exchange reserves have shrunk and inflation has soared with rising fuel prices. For the first time since the 2000s, foreign exchange reserves have dropped to around $9 billion, which is barely enough to fund imports for six months, down from 11 months. At the same time, inflation has hit an all-time high of 8.56 percent with the employment rate remaining as disappointing as usual. Therefore, there is no reason to disregard the suspicions outright.