Facebook icon
Twitter icon
e-mail icon

Piling debt and falling reserves – Sri Lanka’s crisis deepens

Colombo faces loan repayments of US$2.9 billion this year alone as debts continue to grow and the economy struggles in the aftermath of the coronavirus pandemic, reports The Hindu this week.

Sri Lanka’s current foreign debt repayments debt alone amount to 42.6% of the country’s GDP in 2019, The Hindu said, with approximately $960 million owed to India and $5 billion to China in 2018.

“With a $1 billion-international sovereign bond maturing in October, the alarm bells are already ringing in Sri Lanka,” it added.

See more from The Hindu here.

The debt repayments come after Fitch Ratings downgraded Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR), a move that sparked a backlash from Sri Lanka’s Central Bank.

We need your support

Sri Lanka is one of the most dangerous places in the world to be a journalist. Tamil journalists are particularly at threat, with at least 41 media workers known to have been killed by the Sri Lankan state or its paramilitaries during and after the armed conflict.

Despite the risks, our team on the ground remain committed to providing detailed and accurate reporting of developments in the Tamil homeland, across the island and around the world, as well as providing expert analysis and insight from the Tamil point of view

We need your support in keeping our journalism going. Support our work today.

For more ways to donate visit https://donate.tamilguardian.com.