In May 2022, the government defaulted on its debt for the first time in history. Inflation continued to spiral out of control, with a massive shortage of food, fuel and medicine for the country's 22 million people. The president, Gotabaya Rajapaksa, had to resign and flee the country.

Sri Lanka is facing its worst economic collapse in its modern history. Inflation has risen past 50% — and could hit 70% — making it harder for people to survive. Sri Lanka's crisis can be a warning sign to other developing nations because it's a classic emerging market crisis in many ways.

Watch the video to learn about more risks involved in emerging markets. Learn about how Sri Lanka's economy collapsed and the country's path forward. Watch the video for more information on how to invest in Sri Lankan markets. Watch a video about how to Invest in Sri Lanka on CNN iReport.
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