How a rapidly growing Asian economy spiraled into a total national collapse

Sri Lanka was once among Asia's fastest-growing economies, fueled by tourism and a skilled workforce. This video examines how an aggressive strategy of high-interest borrowing transformed that prosperity into a catastrophic debt crisis by 2022.

For two decades, Sri Lanka leveraged its tourism sector and educated labor pool to achieve significant economic expansion. To accelerate this momentum, the government pursued a policy of heavy borrowing at high interest rates.

This reliance on external debt eventually proved unsustainable, triggering a severe crisis in 2022 that resulted in a near-total collapse of the nation's economy.

Source: The Failing Economy of Sri Lanka