Sumary of A Tropical Paradise Is Brewing a Storm in a Tea Cup:
- By Andy Mukherjee | Bloomberg, The Maldives and Sri Lanka, both highly tourism-dependent tropical islands, have seen the pandemic devastate their economies and finances.
- Government debt this year is expected to linger above 100% of gross domestic product in the two small Indian Ocean nations.
- Unsurprisingly, both have similar — and similarly poor — credit standings.
- And yet, the Maldives seems to be turning the corner on visitor arrivals, with numbers last month exceeding the figure for August 2019. Sri Lanka, where a deadly Easter Sunday suicide bomb attack two years ago hit tourism even before the pandemic, is falling behind.
- Among other popular beach destinations, Mauritius, which reached that milestone late last month, is optimistic about a revival in its leisure industry.