Day by day, warning signs about potential default are adding up. At the start of March, Sri Lanka’s Ministry of Power announced seven-and-a-half hours of daily power cuts as the country failed to purchase the oil required for electricity generation due to the foreign currency shortage.
søndag 6. mars 2022
Can China and India help Sri Lanka to avoid a sovereign default?
Sri Lanka is currently facing its worst economic crisis since the country gained independence in 1948. In spite of constant assurances by the governor of the Central Bank of Sri Lanka (CBSL), international rating agencies as well as economists have sounded the alarm about Sri Lanka’s ability to make its foreign debt repayments in 2022. A number of analyses indicate that Sri Lanka is on the verge of a sovereign debt default as the country’s usable foreign currency reserves plunged below $1 billion.
Day by day, warning signs about potential default are adding up. At the start of March, Sri Lanka’s Ministry of Power announced seven-and-a-half hours of daily power cuts as the country failed to purchase the oil required for electricity generation due to the foreign currency shortage.
Day by day, warning signs about potential default are adding up. At the start of March, Sri Lanka’s Ministry of Power announced seven-and-a-half hours of daily power cuts as the country failed to purchase the oil required for electricity generation due to the foreign currency shortage.
