Srilanka, the neighbouring country of India, is cureently facing the crisis. The government of Srilanka has declared the state of emergency because of the crisis of economy and food. President of Srilanka,Gotabaya Rajapaksa had declared the emergency all around the country on 30th August. On 6th September with the majority vote in parliament by president's approval. It is said by president that it was important to declare emergency to control the price and shortage of food supply aand also the hoardings, which is the ultimate reason beehind all this.

Officials were also ordered to ensure that essential items like all the cereals to be sold at government prices or prices based on import costs and prevent hiding of stocks. The president has appointed a Major general to overlook the food distribution services why the prices is at its highest peak. The country's foreign exchange reserves dropped and in result failed bond auction. Many people are standing in a long queue to stock all the essential commodities from various parts of the country. And with all these the Covid cases are also simultaneously rising there and because of that a 16-day curfew has been announced by govt officials. The ministers are requesting and appealing to their citizens to not use vehicle a lot and less use of fuel should be followed so that instead of fuel with the help of  remaining foreign exchange they can buy essential medicines and vaccines.

Sri Lanka's foreign reserves fell to 2.8 billion dollar at the end of July 2021 from 7.5 billion dollar in November.. Last year country banned or licensed hundreds of foreign made goods to save the remaining foreign exchange reserves(forex). After 1970 ,the country has been under the worst import controls. Tourism was the main source of earning and foreign exchange earnings but this also got affected due to coronavirus pandemic. The central bank of Sri Lanka  had in July  said it will dip into forex reserves to partly repay 1 billion dollar of bonds which were maturing at the end of month. In 2020; Over the 650 billion Sri Lankan rupees printed in 2020 ,213 billion srilankan rupees were used to repay foreign debt that depleted foreign exchange. The Sri Lanka was the first country in Asia to raise its interest rates in a pandemic era. And all these hurdles hampers the economy of the country. And state emergency has been declared.