4 hospitals, 26 health centers ready in Mina to serve pilgrims    Saudi women staff at GASTAT spend over 30,000 hours a day in census work    2030 development agenda 'fails' on racial equality and non-discrimination    Asian shares    Head of Qatari Hajj Mission Praises Saudi Arabia's Efforts in Serving Pilgrims    Temperatures in Makkah and holy sites between 30-44    OPEC Secretary General dies at age 63    Saudi Health Ministry's field tours detect 4,222 health violations in runup to Hajj    Thakher Makkah provides exceptional options and opportunities for visitors, investors Unique Project hosts pilgrims steps away from the Holy Mosque    Boris Johnson fights for political survival as cabinet ministers quit    Mumbai: Heavy rains bring life to a standstill in Indian city    Twitter challenges India order to take down tweets    Carlos Santana: Legendary US guitarist collapses on stage    Weather Forecast for Wednesday    Chairman of Sudanese Sovereignty Council Meets with Ethiopian Prime Minister    300 Pilgrims with Disabilities Arrive in Jeddah    Aramco expands Namaat industrial investment programs    Ons Jabeur advances to first GS semifinal in Wimbledon Open    Jail and fine for 10 foreigners, one Saudi in commercial fraud case    India bans service charge at hotels and restaurants    Michael Sheen: I broke down hearing stories of Welsh children in care    Monsoon rains lash Pakistan; 6 killed    UK cinemas ban teens in suits over #gentleminions trend    KSrelief's Masam Project Dismantles 1,143 Mines in Yemen during One Week    France announces enhanced fee structure for streamed music    Zhou conscious after crash halts British Grand Prix    Al-Madinah Municipality: Establishing and Operating New Platforms for Charging Electric Cars in Al-Madinah Al-Munawwarah    Saudi National Squash Team Begins its Training Camp in Cairo    Saudia to Operate Weekly Flights to Barcelona in Cooperation with the Air Connectivity Program    Saudi Arabia Re-elected as Member of the Customs Policies and Financial Committees of the World Customs Organization    Semi-automated offside technology approved by FIFA for 2022 World Cup    Saudia Celebrates Launch of Seasonal Route From Riyadh to Mykonos    Saudi National Basketball Team Beats Indonesia in World Cup Qualifiers    Red Sea Fund Opens Its Third Cycle for Production Funding    SFDA Warns Against Herbal Product "Montalin Jamu" Due to Containing Active Medicinal Ingredients    Al-Hilal lifts MBS League title for 3rd time in a row, beating Al-Faisaly    Morocco and Iraq to the finals of Arab Futsal in Dammam on Tuesday    Saudi US Joint Exhibition on Photography Concludes in Tabuk    Makkah Municipality offers animal sacrifices permitting service through Baladi platform    First Saudi-American Joint Exhibition of Photography held in Tabuk Region    FIFA Accredits Saudi Football Association Among Expert Federations in VAR Tech    Samrat Prithviraj: Why did a Bollywood film on a popular Hindu king fail?    Saudi Council of Senior Scholars slams Indian ruling party leader's remarks against Prophet    Drug charges dropped against Shah Rukh Khan's son    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    Pilgrims Perform Dhuhr and Asr Prayers at Arafat Holy Site    Council of Senior Scholars: Muslim Brothers' Group Don't Represent Method of Islam, rather only Follows its Partisan Objectives, Violating our Graceful Religion    Eid Al-Adha Prayer Performed at the Grand Holy Mosque    







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



Sri Lanka defaults on debt for first time in its history
Published in The Saudi Gazette on 19 - 05 - 2022

Sri Lanka has defaulted on its debt for the first time in its history as the country struggles with its worst financial crisis in more than 70 years.
It comes after a 30-day grace period to repay $78m (£63m) of unpaid debt interest payments expired on Wednesday.
The governor of Sri Lanka's central bank said the country was now in a "pre-emptive default".
Defaults happen when governments are unable to meet some or all of their debt payments to creditors.
It can damage a country's reputation, making it harder to borrow the money it needs on international markets, which can further harm confidence in its currency and economy.
Asked whether the country was now in default, central bank governor P Nandalal Weerasinghe said: "Our position is very clear, we said that until they come to the restructure, we will not be able to pay. So that's what you call pre-emptive default.
"There can be technical definitions... from their side they can consider it a default. Our position is very clear, until there is a debt restructure, we cannot repay," he added.
Sri Lanka's economy has been hit hard by the pandemic, rising energy prices, and populist tax cuts. A chronic shortage of foreign currency and soaring inflation had led to a severe shortage of medicines, fuel and other essentials.
In recent weeks, there have been large, sometimes violent, protests against President Gotabaya Rajapaksa and his family due to the growing crisis.
The country has already started talks with the International Monetary Fund over a bailout and needs to renegotiate its debt agreements with creditors.
The government has said previously that it needs as much as $4bn this year.
Weerasinghe also warned that Sri Lanka's already very high rate of inflation was likely to rise further.
"Inflation obviously is around 30%. It will go even [higher], headline inflation will go around 40% in the next couple of months," he said.
He was speaking after Sri Lanka's central bank held its two key interest rates steady following a seven percentage points rise at its last meeting.
The country's main lending rate remained at 14.5%, while the deposit rate was kept at 13.5%
Last month, two of the world's largest credit rating agencies warned Sri Lanka was about to default on its debts.
Fitch Ratings lowered its assessment of the South Asian nation, saying "a sovereign default process has begun".
S&P Global Ratings made a similar announcement and said that a default is now a "virtual certainty".
Credit ratings are intended to help investors understand the level of risk they face when buying a financial instrument, in this case a country's debt - or sovereign bond.
After being contacted by the BBC on Thursday, major credit ratings agencies Moody's and Fitch said that they did not have any new updates at this time.
S&P Global Ratings did not immediately respond to a request for comment from the BBC.
Last week, President Rajapaksa's elder brother Mahinda resigned as prime minister after government supporters clashed with protesters. Nine people died and more than 300 were wounded in the violence.
On Friday, Sri Lanka's new prime minister Ranil Wickremesinghe told the BBC, that the economic crisis was "going to get worse before it gets better".
In his first interview since taking office, he also pledged to ensure families would get three meals a day.
Appealing to the world for more financial help, he said "there won't be a hunger crisis, we will find food". — BBC


Clic here to read the story from its source.