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.
