Sri Lanka officially defaulted, unable to pay its bond interest debts

Sri Lanka officially defaulted, unable to pay its bond interest debts

 

This is the last day of the 30-day grace period for Sri Lanka to pay $78 million in interest on bonds maturing in 2023 and 2028. 


These payments are due on April 18. However, a few days earlier, Sri Lankan authorities declared themselves insolvent, informing creditors that they would not be able to pay until the debt was restructured.



Sri Lanka is engulfed in political and economic turmoil. Sri Lanka's central bank governor Nandalal Weerasinghe forecast the country's inflation to rise to 40% in the next few months. The new Sri Lankan government even wants to sell the national carrier SriLankan Airlines to reduce losses. 


The plunge in domestic currency and the economic crisis are causing the country to lack the foreign currency needed to import food and fuel. Last month, they announced that they would stop paying international debt to save money for basic necessities.


This is the first time the country has defaulted on its debt since independence from Britain in 1948. This national bond is also among the worst in the world this year.



Sri Lanka is negotiating with the International Monetary Fund (IMF) for a bailout package. They are also negotiating debt restructuring with creditors. Previously, this country announced that it needed 3-4 billion USD this year to get out of the crisis.

Elsewhere, the flexible adaptive economy has entered a development recovery trajectory

GDP in the first quarter of the country is estimated to increase by 5.03%, the macro-economy is stable, all sectors and fields are growing again; production and business activities, people's lives and workers are basically stable.


Export plywood factory of Hoang Gia Yen Bai Co., Ltd. (Photo: Tien Khanh/VNA)

Conclusion of the National Assembly Standing Committee on the content of additional assessment of the results of the implementation of the Socio-Economic Development Plan and the state budget in 2021, the implementation situation in the first months of 2022 and assessment in 2021 was a year facing many unprecedented difficulties and challenges, the COVID-19 epidemic broke out across the country, evolving rapidly, complicatedly, for a long time, heavily affecting production, business and all aspects of life. Socioeconomic.



However, under the leadership and direction of the Party and National Assembly, the Government has made correct and timely decisions, mobilizing the strength of the whole political system, the whole Party, the army, the people and the whole country. the support and support of the international community; The last few months of the year have shifted from the strategy of "preventing and combating COVID-19 epidemic" to "safely adapting, flexibly, effectively controlling the COVID-19 epidemic," thereby, completing at the highest level. objectives and tasks set forth.


The epidemic is effectively controlled; 7/12 socio-economic targets achieved and exceeded the plan; macroeconomic stability, overspending, public debt within allowable limits, reduced interest rates, growth in credit, social security, support for people, employees, and employers are developed. positive statement.

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