Headstrong and misguided leadership has brought the country to a sorry pass. The Fitch Rating agency has downgraded Sri Lanka to a rank of CC. This reflects its view of an increased probability of a default event in coming months in light of Sri Lanka’s worsening external liquidity position and drop in foreign-exchange reserves. The government has responded by finding fault with the ratings agency for being biased and not looking at the entirety of the country’s financial situation and likely sources of foreign exchange inflows. The governor of the Central Bank had stated that the fast-depleting foreign reserves will receive a boost before the end of the year. On the other hand, the grim reality is that with every passing month the country’s foreign reserves have been shrinking and positive predictions to the contrary have not materialised.