The economic crisis in Sri Lanka: Central Bank decides to default on $51 billion of foreign debt; Awaiting relief package from IMF

Sri Lanka, which is facing an economic crisis, announced on Tuesday that it will not repay the foreign debt of $ 51 billion. To repay this, Sri Lanka is waiting for a relief package from the International Monetary Fund (IMF).

According to Sri Lankan Central Bank Governor P. Nandalal Weerasinghe, the decision has been taken to temporarily stop the payment of foreign debt. Weerasinghe said – It is challenging and impossible for the country to pay the debt. This is the right decision at this time.

The finance ministry said the lending countries and other lenders can charge interest on their loans or withdraw the loan money in Sri Lankan rupees from Tuesday afternoon. We are left with limited foreign exchange reserves, which we will use to import essential commodities like fuel. This means that Sri Lanka is no longer in a position to pay in dollars.

Big Updates of Sri Lanka Crisis…

India sent 11,000 metric tonnes of rice to Sri Lanka on Tuesday. Last week itself, India sent 16,000 metric tonnes of rice to Sri Lanka.

India has so far supplied over 2,70,000 metric tonnes of fuel to Sri Lanka.

Police fired tear gas shells on protesting students, farmers would soon get fertilizer subsidy

With the deepening of the economic crisis in Sri Lanka, people's protests are becoming fierce. On the other hand, the government is also using force against the protesters. Hundreds of students protesting in the capital Colombo on Monday fired tear gas shells. These students were marching toward the Sri Lankan Parliament.

Sri Lankan Prime Minister Mahinda Rajapaksa has announced that he will reinstate the fertilizer subsidy for farmers. Due to the deepening of the economic crisis, the government announced a ban on many facilities and subsidies.

11 parties meeting with the President inconclusive

President Gotabaya spoke to a coalition of 11 parties for a united coalition government. The meeting discussed the removal of Prime Minister Mahinda Rajapaksa and the formation of a new cabinet. However, this meeting ended in vain.

Opposition taunt the government

The opposition is leaving no chance to taunt the government. Leader of the Opposition Sajith Premadasa alleges that the people had given the President full time to fulfill their needs, but due to his economic policies, the problems increased.

PM Mahinda addressed the nation

Prime Minister Mahinda Rajapaksa, while addressing the country, blamed the economic problems on Corona. He said – Due to the Corona epidemic, the economy of our country was shaken. Despite this, we had to impose a lockdown, due to which the foreign currency reserve of the country was exhausted. I and the President are trying every moment to get the country out of this crisis.

Also Read: Economic crisis in Sri Lanka Central Bank Governor bluntly - Government should not interfere in our work, the situation may still improve