Sri Lanka Defaults On $51B External Debt

 

Washington Post: Sri Lanka suspends debt payments as it struggles to import fuel and food 

COLOMBO, Sri Lanka — Sri Lanka announced Tuesday it would suspend payments on its foreign debt, a step that underscores the crisis facing a government that is struggling to contain soaring inflation, large-scale protests and a potentially looming humanitarian disaster on an island of 23 million people. 

Although the announcement marks Sri Lanka’s first default since its independence in 1948, the move has been increasingly expected by international markets, particularly in recent months; the country struggled to import fuel, food and even medicine as its foreign currency reserves dwindled. 

From the coastal capital, Colombo, to the central highlands, tens of thousands of angry protesters have taken to the streets for weeks to demand the resignation of President Gotabaya Rajapaksa, whose family has maintained an iron grip over the island’s politics for much of the past decade.  

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Sri Lanka Defaults On $51B External Debt  

Sri Lanka halts debt repayment pending IMF bailout plan -- AP 

Sri Lanka unilaterally suspends external debt payments, says it needs money for essentials -- Reuters  

Sri Lanka Default Looms as Debt Payments Halted to Save Dollars -- Bloomberg

Sri Lanka stops foreign debt payments pending IMF bailout talks -- DW  

Sri Lanka announces default on external liabilities, say authorities -- TASS  

Sri Lanka to suspend foreign debt payments -- Al Jazeera