News > Sri Lanka officially defaults on its debt, for first time in history

Sri Lanka officially defaults on its debt, for first time in history

The Free Press Journal | 19/05/2022 05:02 PM | Click to read full article

Sri Lanka has defaulted on its debt for the first time in its history as the country struggles with its worst financial crisis in more than 70 years. 

Sri Lanka’s government announced in mid-April it would stop paying back its foreign debt to preserve cash for food and fuel imports as it struggled with a dollar crunch that’s led officials to implement capital controls and import curbs.