Sri Lanka Financial Crisis Worsens

Sri Lanka has found itself in a spot of bother as the country defaulted on its debt for the first time in its history.

The country has faced its worst fiscal crisis in more than 70 years.

It comes after a 30-day grace period to repay $78 million of unpaid debt interest payments expired recently.

The governor of Sri Lanka’s central bank said the country was now in a pre-emptive default.

Defaults happen when governments are unable to meet some or all of their debt payments to creditors.

The country’s economic situation is attributed to the COVID-19 pandemic which crippled the tourist industry, mismanagement of resources, and a poorly led government.

The situation has caused social unrest forcing people onto the streets to demonstrate and protest.

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Edited by Jesus Chan

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