Economic analysts expressed views that this would be a very crucial time for Sri Lanka as the country is facing a severe shortage of US dollars to repay loans and that the ensuing situation would further aggravate Sri Lanka's economic woes.

 

Basil will have to face a huge challenge as the country's foreign reserves have tumbled to just US $ 4 billion which is basically sufficient to cover the import expenses for nearly two and a half months.

 

Most of the analysts are of the view that Sri Lanka will have to obtain more loans to repay these loans which will create a vicious circle for the country's economy.

 

Basil's ability to handle the debt crisis will determine his success as the Finance Minister and as well as his political future.