Sri Lanka Announces Defaulting on its $51 Billion External Debt

After weeks of economic turmoil, Sri Lanka stated on Tuesday that it would default on its $51 billion external debt in the absence of a bailout from the International Monetary Fund.

The country’s finance ministry stated that creditors, including foreign governments that had borrowed to the South Asian nation, were free to capitalize any interest payments owed to them from Tuesday afternoon or opt for repayment in Sri Lankan rupees.

The country is experiencing its worst economic crisis since independence, with frequent blackouts and severe food and fuel shortages.

In a statement, Sri Lanka’s finance ministry stated that creditors, including foreign governments, were free to capitalize any interest payments owing to them beginning Tuesday or choose for return in Sri Lankan rupees.

“The government is taking the emergency action only as a last resort in order to prevent further deterioration of the republic’s financial position,” according to the statement.

It went on to say that the immediate debt default was necessary to provide “fair and equitable treatment of all creditors” ahead of the South Asian nation’s participation in an International Monetary Fund-assisted recovery program. The problem has caused severe devastation among Sri Lanka’s 22 million inhabitants and sparked weeks of anti-government protests.

Last year, international rating agencies downgraded Sri Lanka, thus preventing it from accessing foreign financial markets to raise much-needed loans to finance imports. Sri Lanka had asked India and China for debt relief, but both countries instead offered larger credit lines to buy goods from them.

Apart from this, if you are interested; you can also read EntertainmentNumerologyTech, and Health-related articles here: 

DesireMovies, How to watch NFL games without cableHow to apply Eye CreamHow to unlock iPhoneHow to cancel ESPN+How to turn on Bluetooth on Windows 10Outer Banks Season 36streams4AnimeMoviesflix123MKVMasterAnimeBuffstreamsGoMoviesVIPLeagueHow to Play Music in DiscordVampires Diaries Season 9Homeland Season 9Brent Rivera Net WorthGrimes net worthPDFDriveSmallPDFDramacoolSquid Game Season 2Knightfall Season 3CrackstreamKung Fu Panda 4Angel Number 122Angel Number 7Angel Number 10221616 Angel Number333 Angel Number666 Angel Number888 Angel Number777 Angel Number444 angel numberSundar Pichai Net WorthBruno Mars net worthKissAnimeJim Carrey net worthBollyshareAfdahMoviezwapJalshamoviezPrabhas Wife NameProject Free TVKissasianMangagoKickassanimeMoviezwapJio RockersDramacoolM4uHDHip DipsM4ufreeFiverr English Test AnswersNBAstreamsXYZHighest Paid CEOThe 100 season 8, and F95Zone

Thanks for your time. Keep reading!

Subscribe to Our Latest Newsletter

To Read Our Exclusive Content, Sign up Now.
$5/Monthly, $50/Yearly



940 Area Code: Where the West Begins [In Depth Guide]

Undoubtedly, understanding the specifics of area codes can be...

How to Set Your Clock in Indianapolis Time Zone [Detail Guide]

Navigating time zones can be puzzling, especially in areas...

Sunflower Lecithin: The Sustainable Alternative to Soy Lecithin [Detail Guide]

Are you seeking a natural solution that's packed with...

Poorest Countries in the World: A List of 50 Poorest Countries in 2023

Many of the world's poorest countries have well-developed agricultural...

Google Antitrust Case Details: A Breakdown of the Allegations

Federal prosecutors have accused Google of stifling significant competition...