THE Sri Lankawhich is faced with worst recession after its independence, it declared today suspension of payments for external debt, $ 51 billionat present the country does not have sufficient foreign exchange reserves to import commodities.
“We have reached the point where the payment of loan installments is a challenge and impossible. “The best course of action is to restructure the debt and avoid a severe bankruptcy,” he said. P. Nadallal Uirasinge.
He himself – who took over the management of the central bank last week – explained that the measure of suspension of payments is “temporary until we reach an agreement with the lenders and receive the support of an IMF program”.
THE Sri Lanka Talks with the International Monetary Fund on a loan are expected to begin next week, with the country suffering from shortages of food, fuel and medicine and facing prolonged power outages.
Due to these shortcomings but also his high inflation There have been mass protests against the government in recent weeks.
Last year, international rating agencies downgraded Sri Lanka’s credit rating, leaving the country without access to foreign exchange markets and unable to obtain the necessary loans to finance food, fuel and medicine imports.
Sri Lanka has asked India and China for debt relief, but the two countries have opted for more loans to buy basic goods.
Thousands of Sri Lankans have rallied to demand the resignation of President Gotha Baya Rajabaxa, blaming him for the way he handles the crisis.
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