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Easter Day attacks imperil Sri Lanka economic recovery

Posted at 8:13 PM, Jul 29, 2019
and last updated 2019-07-29 23:13:56-04

COLOMBO, Sri Lanka (AP) — Shocks from deadly suicide bombings on Easter Day in Sri Lanka are still reverberating throughout its economy in the worst crisis since the South Asian island nation’s civil war ended in 2009.

The blasts that killed more than 250 people were blamed on Islamic extremists. They have devastated Sri Lanka’s vital tourism industry, source of jobs for many, and are hindering foreign investment.

Sri Lanka’s economy was already in trouble, amid a political crisis, its currency under pressure from a growing national deficit and rising debt. The attacks added to those challenges.

The worst hit have been people, many of them self-employed, living close to the brink of poverty, economists say.

Growth is forecast to fall to 3% this year, way below the average in recent years of over 6%.