News

Sri Lanka defaults on debt

Published

4 years ago

May 20, 2022

Sri Lanka has defaulted on its debt for the first time in its history

It comes after a 30-day grace period expired on Wednesday. The nation was forced to come up with 78 million dollars of unpaid debt interest payments.

Sri Lanka is struggling with its worst financial crisis in more than 70 years.

A debt default happens when governments are unable to meet some or all of their debt payments to creditors.

It can damage a country’s reputation with investors, and makes it harder to borrow the money it needs on international markets.

There are reports of fuel being sold on the black market for eye-watering amounts, as residents line up for handouts like free bread.

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Costa Haritos

Costa is a news producer at ticker NEWS. He has previously worked as a regional journalist at the Southern Highlands Express newspaper. He also has several years' experience in the fire and emergency services sector, where he has worked with researchers, policymakers and local communities. He has also worked at the Seven Network during their Olympic Games coverage and in the ABC Melbourne newsroom. He also holds a Bachelor of Arts (Professional), with expertise in journalism, politics and international relations. His other interests include colonial legacies in the Pacific, counter-terrorism, aviation and travel.