A tragedy is unfolding in Sri Lanka. The economy is paralysed, and because the country's debts are unsustainable, it cannot borrow. The country is suffering the world's worst economic crisis since World War II.
The situation is so dire that millions of people have taken to the streets. The president has fled the country, and now parliament has elected a new, but unpopular, replacement. If all goes smoothly, the International Monetary Fund can come to Sri Lanka's aid with a rescue loan package and a programme to achieve sustainable fiscal, monetary and exchange-rate policies.
Sri Lanka's plight serves as a lesson to other governments. When a country's economic problems are obviously becoming insurmountable, postponing a reckoning through various piecemeal measures will only make matters worse in the end.
