Colombo: The Sri Lankan government has, for the first time, been forced into bankruptcy after failing to repay even the interest on foreign debt securities.
In our neighboring country Sri Lanka, tourism revenue has been affected by the spread of corona and foreign exchange inflows have declined. As a result, the country is in deep economic crisis. In addition, prices have risen sharply due to shortages of food, medicine and fuel. Inflation has risen to 40 percent. As a result, angry people are protesting against the government. In this situation, Sri Lanka’s debt and interest together have risen to 3 lakh 82 thousand crore rupees. Following this, the Sri Lankan government announced last month that it would suspend the repayment of the loan. Whereas interest on a few key loans will be paid. However, the Sri Lankan government last month failed to pay interest of Rs 585 crore on two government bonds. The 30-day grace period granted thereafter ended on the heels of yesterday. In this context, the Governor of the Central Bank of Sri Lanka Nandalal Weerasinghe said yesterday:
The Sri Lankan government has failed to pay interest on two bonds. He can use different technical terms for this at will. We have asked for a loan of 2 – 4 lakh crore rupees from the International Monetary Fund. There is talk of this. Until then we will not be able to repay the loan and interest.
Thus he spoke. In the Asia-Pacific region, Sri Lanka is facing bankruptcy for the first time this century.
Inauguration of new Ministers
In Sri Lanka’s new coalition government, led by Prime Minister Ranil Wickremesinghe, nine ministers were appointed yesterday. They were sworn in by President Gotabhaya Rajapaksa. The total number of ministers has now risen to 13, with four taking over as ministers last week. Meanwhile, it has been reported that Samagi Jana Balavekaya party leader Sajid Premadasa has expelled two of his party ministers from the party.
Closing of schools
Shortage of petrol and diesel has increased in Sri Lanka. Thus the schools were closed yesterday. Public sector employees were asked to refrain from coming to work.
Colombo: The Sri Lankan government has, for the first time, been forced into bankruptcy after failing to repay even the interest on foreign debt securities.