Sri Lankan government admits it is in a foreign exchange crisis, shackled by a backward looking policy framework which has put reforms and the peace process in a limbo

Sri Lanka's opposition United National Party warned that by printing money, and keeping interest rates artificially low, while foreign reserves are dwindling, the authorities are rapidly driving the economy towards another serious crisis. Sri Lanka's opposition United National Party warned that by printing money, and keeping interest rates artificially low, while foreign reserves are dwindling, the authorities are rapidly driving the economy towards another serious crisis.

"We understand that reserves are down to US$ 1,796 mn," Bandula Gunewardene, a parliamentarian who had the Deputy Finance Ministerial portfolio in the previous administration, told a media conference called ahead of the maiden budget of the United People National Front government, which is due on November 18.

The government admitted that Sri Lanka is in a financial crisis on Monday, the Finance Ministry said