Bankrupt Sri Lanka..! Big Warning to all Nations..!

Sowmiya Sriram
Bankrupt Sri Lanka..! Big Warning to all Nations..!

Amid the worst economic downturn in the world, the popular struggle and the political crisis have plunged sri lanka into a state of disarray. sri lanka is currently in bankruptcy for the first time. governor of the Central bank of sri lanka Nandalal Weerasinghe today told policymakers at the main government meeting that the Sri Lankan government would not be able to make any payments on the debt until the country's total debt was restructured.
For the first time, the Sri Lankan government failed to pay $ 78 million worth of coupons due to creditors on april 18, even after 30 days. It is thus known that sri lanka has officially gone bankrupt. Nandalal Weerasinghe says inflation in sri lanka is already 30 percent and will increase to 40 percent in the coming months. The continuing declining Sri Lankan currency and economic crisis have pushed it into this abysmal state.
Sri Lanka does not even have the foreign exchange reserves needed to import food and fuel. 40 percent inflation and bankruptcy will have a major impact on this situation.
 The outstanding amount of essential commodities purchased by sri lanka from abroad has increased since January. The Sri Lankan government has also withheld about $ 12.6 billion in payments.
sri lanka went bankrupt for the first time since independence from britain in 1948, unable to repay the loan.
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