Sri Lanka’s Economic Crisis and Its Impact on Society and Business (2022–2025) Sri Lanka, once known for its steady growth and tourism-friendly image, experienced a severe economic crisis beginning in 2022. This case study explores what led to the crisis, how it affected the lives of people and businesses, and what steps the country has taken toward recovery by 2025. Background Before the crisis, Sri Lanka was already facing serious financial pressures. Years of borrowing, especially for large infrastructure projects, left the country with rising foreign debt. At the same time, weak tax revenue and high import dependence made the economy vulnerable. The COVID-19 pandemic pushed things further downhill, wiping out key sources of income like tourism and remittances. How the Crisis Unfolded In 2022 , the crisis became visible and intense: Sri Lanka defaulted on its debt a first in its history. Foreign reserves dropped so low that the government couldn’t afford basic impo...