Extraordinary steps were taken to maintain the dwindling dollar reserves needed to import basic foods and fuel.
Sri Lankan authorities have warned investors about default and suspended external debt payments. Bloomberg reported this on April 12th.
“All outstanding payments to bond holders, bilateral lenders and institutional lenders will be suspended until the debt is restructured,” the republic’s Ministry of Finance said.
The need to declare a default is caused by the need to maintain foreign exchange reserves, which are necessary for the purchase of food and fuel. They are now at $ 1.94 billion and down 16% over the past month.
It will be recalled that Sri Lanka is experiencing a severe economic crisis due to the COVID-19 pandemic. The country was left without tourists, which led to a halt to the inflow of foreign money.
Due to rapidly rising inflation and prolonged power outages in the republic, widespread protests continued in the second month.
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Source: korrespondent
