Posted on 04/13/2022 9:34:49 PM PDT by logi_cal869
The Government yesterday signaled Sri Lanka was bankrupt, announcing a temporary suspension of repayment of all external debt as of yesterday, saying the country can no longer honour its commitment owing to poorer financial position caused by external and internal shocks.
The move puts an end to Sri Lanka’s outstanding track record of servicing its external debt obligations since the independence but a “negotiated or soft default” is viewed as more respectable as opposed to a disastrous “hard default”.
Treasury Secretary Mahinda Siriwardena told journalists yesterday that the “orderly and consensual” restructuring of external debt obligations will be buttressed by an economic assistance program supported by the International Monetary Fund (IMF).
He recalled that Sri Lanka has had an unblemished record of external debt servicing since independence in 1948.
“However recent events including the COVID-19 pandemic and fallout from the hostilities in Ukraine, eroded Sri Lanka’s fiscal position,” he said.
(Excerpt) Read more at ft.lk ...
Wait until that happens to the US.
Only a 20% reduction in production? I would think the premium from the organic label would more than make up for that.
I feel bad for Sri Lanka. Food is gonna be short, they are way overcrowded and do not have the capacity to feed themselves and they do not have the money to buy food in the world market. We can all see what’s coming. Bangladesh is in the same situation as are several African countries.
> the COVID-19 pandemic and fallout from the hostilities in Ukraine
Don’t forget global warming and Y2K! The cause is anything but poor decisions.
They have tea and rice, which have ready markets. And there is (or was) tourism, which was quite important pre-covid. And a bunch of other things too.
The problem is they have been living beyond their means.
Not if most of it is for domestic consumption.
Circumstances on top of poor decisions. It doesnt have to be one thing.
If you have had to support women (wives, daughters), you would know this.
OP’s claim was they were major exports.
It’s not. Check out recent stories about food riots in other countries.
If only they had Bitcoin……….
Soon the chinese will repo the island and tell everyone to get off.
That’s funny.
I was referencing the looming financial crisis, but point taken.
I don’t. The US is an example for which I am ashamed and angry beyond words.
Congress could have resolved Sri Lanka’s debt with a pittance of what was wasted here.
Did you catch the quote about the US pushing low sulfur shipping fuel?
“Priorities.”
Well, iif chinese loans are not paid off, what can China do about it?
At Present, China has pretty serious economic problems at home during the transition to full China Socialism. Loses in Siri Lanka are just trivial to the incredible losses at home
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