See How Srilanka Economy Crashed... The President and Prime Minster’s houses in Sri Lanka were burnt by protestors. Reporting journalists were being robbed. Shoot-at-sight orders were imposed due to rising unrest. Some refugees from Sri Lanka have taken to boats to reach Indian shores in a desperate search for food and employment. How did our neighbor, Sri Lanka, reach here? Foreign Reserves Every country keeps the currencies of other countries. This is to be able to trade with them. If Sri Lanka wished to buy something from the USA, it wouldn’t be able to pay in Sri Lankan Rupees. They would need US dollars. Where would the US dollars come from? From people who buy from Sri Lanka. When the Sri Lankan economy exports a product or service to a buyer outside Sri Lanka, the buyer pays the Sri Lankan exporter in US dollars. The exporter then goes to the Sri Lankan banks and asks for Sri Lankan Rupees in return for the US dollar it has. This is how Sri Lanka (or any country) ensures it has ...