Dramatic situation in Sri Lanka
Sri Lanka declared bankruptcy in mid-April. The country is unable to repay its foreign debt.
Sri Lanka has suspended interest payments on bonds. Its authorities wanted to preserve foreign exchange reserves to import essentials such as fuel. Now Sri Lanka’s prime minister has said this is its biggest economic crisis in history. It turns out hospitals are running out of medicine and equipment. There is also no fuel. As a result, electricity outages can last up to 15 hours a day. The government is printing money to pay for basic products and services, as well as to pay the salaries of public sector workers.
Sri Lanka has fallen into trouble due to the country’s unsustainable debt and lack of foreign exchange to repay loans and service imports, among other things. Massive protests are underway in the country.