Sri Lanka Destroyed, Failed to Pay Rp 729 T Debt!

Jakarta –

Sri Lanka’s condition is very worrying. In the midst of the economic crisis that hit, the country was faced with the problem of defaulting on its foreign debt of US$ 51 billion or equivalent to Rp. 729 trillion (assuming an exchange rate of Rp. 14,300).

The situation in Sri Lanka is also not conducive. A wave of protests colored the Sri Lankan crisis, which demanded the government step down. Severe food and fuel shortages and lengthy power outages have brought suffering to the country’s 22 million people.

Public anger has flared in recent weeks with attempts to storm the homes of government officials. Meanwhile, security forces dispersed protesters with tear gas and rubber bullets.

Sri Lanka’s Ministry of Finance said it had defaulted on all external debt, including loans from foreign governments ahead of the IMF bailout.

“The government is taking emergency measures only as a last resort to prevent further deterioration of the financial position,” the ministry said in a statement NDTVWednesday (13/4/2022).

Creditors are free to charge Sri Lanka any interest or choose to pay debts in any currency rupee Sri Lanka.

Sri Lanka’s economic crisis started with the inability to import essential goods after the COVID-19 pandemic, suppressing revenues from tourism and remittances.

The government imposed a broad import ban to conserve foreign exchange reserves and use them to pay off debts that are now defaulting.

Economists say the crisis is being exacerbated by mismanaged governments, accumulated debt and erroneous tax cuts.

Public disillusionment with the government is widespread. Sri Lankans have to stand in long lines to buy scarce gasoline, gas and kerosene for cooking. Thousands of people camped outside the president’s office and called for his resignation.

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