First Lebanon now Srilanka declared themself bankruptcy. After the covid-19 break out some countries(especially those whose source of income was from tourism) face severe consequences. Another source of income was exporting quality tea which was also reduced significantly. Srilankan tea brand is infamous in the world. Besides that, some bad decisions from the govt like forbidding tp importation of fertilizer to produce organic foods create food shortages in the country. Mostly covid and govt is to blame for this current situation in Sri Lanka.
Note: Neputism is very common in srilanka and most of the important ministry is occupied by brother and relatives of current PM.
It is a shame that the world is ruled by a rich elite class who consolidate power and play citizens against each other. It is incredibly easy for democracy to be undermined and looted for the benefit of the few - instead of them allowing many people to live comfortably, some hoard enough wealth to live a thousand lifetimes in extravagance. As you said, often instead of deserving it through hard work or intelligence, it is simply because you were born into a specific family. We put a lot of trust into politicians at the top and have to be on guard constantly, they only have to make a few tweaks in the right conditions before independent institutions which can take them down are gone. It's a sad state of affairs, hopefully Sri Lanka can rid themselves of the scourge of nepotism.