The Solutions for the Economic Crisis in Sri Lanka: An Islamic Perspective

Abstract: The current economic crisis in Sri Lanka is precipitating diverse socio-economic and political challenges. This situation had arisen due to the erroneous decisions made within the previous government’s policies. Various parties are proposing policy amendments to extricate the country from this crisis. Against this backdrop, the study aims to identify the factors contributing to the country’s economic crisis, analyse the consequences faced by Sri Lankans, and recommend the most appropriate Islamic guidelines for the country’s recovery from the crisis. This qualitative study adopts a sociological approach. Primary and secondary data were used. According to the study’s findings, one of the primary reasons for Sri Lanka’s economic decline is the avoidance of interest-free lending relationships with Middle Eastern countries and transactions with usurious lenders such as Russia and China. The researcher recommends some recommendations to alleviate the country’s economic crisis. Most significantly, the country’s economic recovery could be achieved by implementing an Islamic economic system and prohibiting usury, deception, and fraud, which are forbidden in Islam.

Keywords: Economic Crisis, Sri Lanka, Solution, Islamic Perspective, Covid 19