Cash-strapped Sri Lanka began a fresh austerity drive as the country aims to reduce its expenses and secure the IMF bailout. Now Colombo has temporarily frozen all government recruitments as new taxes and high electricity prices kicked in this week.

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The inevitable has happened, and the Sri Lankan government has declared bankruptcy. It makes one wonder if other nations might have undergone bankruptcy in the past?

Did you know this country was once bankrupt?

Crisis-hit: Sri Lanka hikes rates by record as protests spiral

Sri Lanka may be on a brink of bankruptcy as the island country faces an acute financial crisis topped by a blow to a food supply. As 2022 begins, Sri Lanka is looking to face record-high inflation, financial crisis, exorbitant food prices, humanitarian crisis, and pandemic-induced disruptions. The Sri Lankan government had decided to temporarily ban the use of chemical fertilizers in May 2021. The ban led to protest by farmers ultimately leading to a drastic drop in cultivation in Sri Lanka. Moreover, long queues were seen outside shops for bare necessities lie milk, sugar, and rice. Also, several shops in the markets were shut. Opposition MP Harsha de Silva told Sri Lankan parliament that the country would go bankrupt.

Sri Lanka may go bankrupt in 2022? From financial to food crisis Sri Lanka’s woes amid Covid

Sri Lanka to opt for an international monetary fund bailout or not, that is a big question in Sri Lanka right now. Sri Lanka's cabinet of ministers is now trying to meet further to explore the IMF option as a country reels under a massive financial crisis.

Sri Lanka's inflation hit a record 11.1% in November