Sri Lanka defaults on debts for first time
Economists fear Sri Lanka could be first of several, with IMF in talks with Egypt, Tunisia and Pakistan
Sri Lanka has defaulted on its debts for the first time in its history as it struggles with an economic and political crisis triggered by global shock waves from the pandemic and the war in Ukraine.
An inflation rate spiralling towards 40%, shortages of food, fuel and medicines and rolling power blackouts have led to nationwide protests and a plunging currency, with the government short of the foreign currency reserves it needed to pay for imports.
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