Highlights

  • Sri Lanka govt keeps option open to repay external debt in Sri Lankan Rupees
  • Forex reserves are down over 80% in Sri Lanka

Latest news

IND vs ENG 5th Test: Bumrah, Jadeja highlight India's surge on Day 2, marred by multiple rain breaks

IND vs ENG 5th Test: Bumrah, Jadeja highlight India's surge on Day 2, marred by multiple rain breaks

Police arrests `mastermind' of chemist's killing in Amravati

Police arrests `mastermind' of chemist's killing in Amravati

Escorted by Maharashtra CM Shinde, rebel Shiv Sena MLAs return to Mumbai

Escorted by Maharashtra CM Shinde, rebel Shiv Sena MLAs return to Mumbai

 Pulitzer-winning Kashmiri photojournalist stopped from flying abroad

Pulitzer-winning Kashmiri photojournalist stopped from flying abroad

Ukraine video shows Russian warplanes dropping 'phosphorus bombs' on Snake Island

Ukraine video shows Russian warplanes dropping 'phosphorus bombs' on Snake Island

Sri Lanka announces debt default, says can repay in local currency

Will suspend foreign debt payments to avoid a hard default, with its limited foreign reserves 

Sri Lanka will default on its debt to other countries, that is the headline out of the debt-stricken island nation as it grapples for economic relief from the IMF.

In a notification issued by the finance ministry, Sri Lanka alerted the world that they will suspend debt repayments for an interim period. The country in crisis however left the option for creditors to take payments in the local currency Sri Lankan Rupees as foreign exchange remains critically low and reserved for fuel purchases.

Also read/watch | China Covid crisis: 373 million in lockdown, 477 bulk cargo ships waiting

"The government is taking the emergency measure only as a last resort in order to prevent further deterioration of the republic's financial position," the statement said.

It added that the immediate debt default was to ensure "fair and equitable treatment of all creditors" ahead of an International Monetary Fund assisted recovery program for the South Asian nation.

Sri Lanka was negotiating a program with the IMF and bilateral support was also expected. The nation is grappling with its worst economic downturn since independence, with regular blackouts and acute shortages of food and fuel.

Also read/watch | Key Nirav Modi aide extradited from Cairo

Up Next

Sri Lanka announces debt default, says can repay in local currency

Sri Lanka announces debt default, says can repay in local currency

Govt raises taxes on export of ATF, diesel and petrol, RIL & ONGC hit

Govt raises taxes on export of ATF, diesel and petrol, RIL & ONGC hit

World MSME Day: India's MSME industry set for a global introduction

World MSME Day: India's MSME industry set for a global introduction

'Can high rates really bring down inflation?' Fed Chief faces brutal questioning

'Can high rates really bring down inflation?' Fed Chief faces brutal questioning

Explained: Falling global markets and what is the new 'GST' fear

Explained: Falling global markets and what is the new 'GST' fear

Sri Lanka govt employees to get extra leave every week for farming

Sri Lanka govt employees to get extra leave every week for farming

More videos

New LPG connection to get costlier

New LPG connection to get costlier

Watch Fed Chief Powell get quizzed! Can rate hikes really reduce inflation?

Watch Fed Chief Powell get quizzed! Can rate hikes really reduce inflation?

Russia made $98bn in fuel exports in 100 days of Ukraine war

Russia made $98bn in fuel exports in 100 days of Ukraine war

PM Modi's job bonanza: 10 lakh government job opening soon

PM Modi's job bonanza: 10 lakh government job opening soon

Lakhs of housing projects stuck incomplete, which region is the worst?

Lakhs of housing projects stuck incomplete, which region is the worst?

World Bank sharply cuts India GDP growth forecast, raises global recession risk

World Bank sharply cuts India GDP growth forecast, raises global recession risk

RBI Monetary Policy: Repo rate hike again, shocks with 50 bps hike

RBI Monetary Policy: Repo rate hike again, shocks with 50 bps hike

A 75 km highway built in just 100 hours! A new world record for India

A 75 km highway built in just 100 hours! A new world record for India

RBI Monetary Policy: Hike for sure but will Governor Das be swift or soft?

RBI Monetary Policy: Hike for sure but will Governor Das be swift or soft?

India in talks to buy more oil at a discount from Russia: reports

India in talks to buy more oil at a discount from Russia: reports

Editorji Technologies Pvt. Ltd. © 2022 All Rights Reserved.