For the first time in its history, Sri Lanka has run into financial difficulties. The government is struggling to stem the economic meltdown that has sparked mass protests and a political crisis.
The Governor of the Central Bank of Sri Lanka, Nandalal Weerasinghe, announces the bankruptcy.
(Bloomberg) Sri Lankan policymakers had warned against this. They warned creditors that the country was unable to make the payments. Until the debt is restructured, Sri Lanka is insolvent. It is a preventive default, said Central Bank Governor Nandalal Weerasinghe at a briefing on Thursday.