Justice minister, DGA chief discuss partnership to boost digital judicial services    Netanyahu does not rule out further strikes on Hamas leaders    US farmers are being squeezed – and it's testing their deep loyalty to Trump    Romania condemns 'irresponsible' Moscow after Russian drone breaches its airspace    Kirk's assassination is forcing US politicians to make difficult choices about their safety    India players refused handshakes, says Pakistan coach    Final stage of Spanish Vuelta cycling race abandoned after disruption by pro-Palestine protesters    Mané fires Al Nassr past Al Kholood to keep perfect start as Ronaldo honored    Lacazette brace earns NEOM SC first Saudi Pro League win    Adolescence star Owen Cooper makes Emmys history at 15    Saudi liquidity grows 8.4%, reaching SR3.1 trillion in July 2025    Over 434,000 people acquire first aid skills during nationwide health campaign    Saudi Arabia's legislative advancement highlighted at International Conference on Judicial Training    Sudden swerving among 3 major causes of accidents in Riyadh in 2024    Princess Haifa emphasizes pivotal Saudi role in shaping future of tourism    Sahm Capital names Saudi Olympian Fayik Abdi as brand ambassador    SR9000 fine for copyright infringement using AI    King Charles and Prince Harry finally reunite after 19 months apart    Anastacia: Arnold Schwarzenegger made me sing Whatta Man 12 times    Thousands pay their last respects to Giorgio Armani, private funeral on Monday    The key to happiness    Sholay: Bollywood epic roars back to big screen after 50 years with new ending    Ministry launches online booking for slaughterhouses on eve of Eid Al-Adha    Shah Rukh Khan makes Met Gala debut in Sabyasachi    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Sri Lanka warns it will default on its foreign debt amid crisis
Published in The Saudi Gazette on 13 - 04 - 2022

Sri Lanka has said it will temporarily default on its foreign debts amid its worst economic crisis in over 70 years. Officials said the impact of the pandemic and the Ukraine war made it "impossible" to pay its creditors.
The South Asian country has seen mass protests as it suffers food shortages, soaring prices and power cuts. It is due to start talks with the International Monetary Fund (IMF) next week on a loan program to get its economy back on track.
Sri Lanka's Finance Ministry said it otherwise had an "unblemished record" of paying its dues since independence from the UK in 1948.
"Recent events, however... have eroded Sri Lanka's fiscal position that continued normal servicing of external public debt obligations has become impossible," it said in a statement on Tuesday.
The IMF had assessed Sri Lanka's debt to be unsustainable last month, the ministry noted.
"Although the government has taken extraordinary steps in an effort to remain current on all of its external indebtedness, it is now clear that this is no longer a tenable policy," it said.
"A comprehensive restructuring of these obligations will be required."
S&P Global Ratings said it had "nothing to say at this stage" when approached by the BBC.
In January, the firm lowered Sri Lanka's rating to a classification where it was "currently vulnerable and dependent on favorable business, financial and economic conditions to meet financial commitments".
Moody's and Fitch Ratings did not immediately respond to requests for comment.
Lakshini Fernando of Asia Securities welcomed the move by Sri Lanka's government, and called it "the better option compared with a hard default".
"We expect Sri Lanka's current credit rating to be downgraded to 'selective default' or 'restricted default' following the announcement," Fernando said.
She noted that Sri Lanka had $78m (£60m) in international sovereign bond payments due next week.
Sri Lanka's foreign reserves stood at $1.93bn at the end of March. However, it has around $4bn in foreign debt payments due this year.
The country recently named a new central bank chief and almost doubled its key interest rate to help tackle soaring prices and shortages of essential goods.
In recent weeks, demonstrators have taken to the streets of the capital Colombo as homes and businesses were hit with long power cuts.
Sri Lankans are faced with shortages and rising inflation after the country steeply devalued its currency last month ahead of talks with the IMF over a bailout. — BBC


Clic here to read the story from its source.