Sri Lanka closed high commissions in three countries

The economic condition of Sri Lanka is in bad shape.

Sri Lanka closed high commissions in three countries
The economic condition of Sri Lanka is in bad shape.

Sri Lanka has announced the closure of three foreign diplomatic missions to save foreign exchange reserves. Sri Lanka's Central Bank has implemented strict controls on the dollars needed to finance essential imports. 

The Sri Lankan Foreign Ministry has said that consulates in Germany, Nigeria, and Cyprus will be closed from January 2022. The ministry has said that such a decision has been taken with the aim of preserving the country's much-needed foreign reserves and reducing the expenditure related to the maintenance of Sri Lanka's missions abroad.

The three missions culminated on a day when the Central Bank of Sri Lanka banned foreign exchange remittances received by locals. It has ordered all commercial banks to hand over a quarter of their dollar earnings above 10 percent to the government. Simply put, this means that banks will have fewer dollars to give to private traders who import essential goods.