COLOMBO: Sri Lanka's head of government says its debt-laden economy has "collapsed" after months of shortages of food, fuel and electricity, and the South Asian island nation cannot even purchase imported oil.

"We are now facing a far more serious situation beyond the mere shortages of fuel, gas, electricity and food. Our economy has completely collapsed. That is the most serious issue before us today," Sri Lankan Prime Minister Ranil Wickremesinghe told parliament.

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