Sri Lanka late in paying its debts| MENAFN.COM

Monday, 04 July 2022 12:20 GMT

Sri Lanka late in paying its debts


(MENAFN) As the nation grapples with its greatest financial crisis in over 70 years, Sri Lanka has foreclosed on its debt for the first time in its history.

It comes after a 30-day grace period to refund delinquent debt interest payments of USD78 million (pound 63 million) ended on Wednesday.

Sri Lanka's central bank governor declared the nation to be in "pre-emptive default".

When administrations are unable to satisfy some or all of their debt obligations to creditors, defaults occur.

It can undermine a nation’s reputation, making it more difficult to borrow money on foreign markets, further eroding trust in its currency and economy.

MENAFN19052022000045014146ID1104241601


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.