Sri Lanka Falls Into Default For The First Time Ever
- Nation missed grace period payments on bonds worth $78 million
- Asia’s fastest inflation is forecast to worsen to 40% from 30%
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Sri Lanka fell into default for the first time in its history as the government struggles to halt an economic meltdown that prompted mass protests and a political crisis.
Policy makers had flagged to creditors that the nation wouldn’t be able to make payments until the debt is restructured, and is therefore in pre-emptive default, central bank Governor Nandalal Weerasinghe said at a briefing Thursday. Fitch Ratings also confirmed that finding, downgrading Sri Lanka to “restricted default” later in the day.