Sri Lanka declares bankruptcy

12:56 06 July Kyiv, Ukraine

Sri Lanka is experiencing its worst financial crisis in decades.

 
This was stated by Prime Minister Ranil Wickramasinghe, writes CNN.

Speaking in parliament, he said negotiations with the International Monetary Fund to revive the country's collapsed economy were "difficult" because Sri Lanka, with a population of 22 million, entered the talks as a bankrupt country, not as a developing country.
 
“Now we are participating in the negotiations as a bankrupt country. Therefore, we will face a more difficult situation than in previous negotiations. Due to the state of bankruptcy in which our country is, we must separately submit a plan for the sustainability of our debt,” said Wickramasinghe.
 
Sri Lanka is facing its worst financial crisis in 70 years after its foreign exchange reserves fell to record lows and dollars ran out to pay for essential imports, including food, medicine and fuel.
 
“In terms of fuel and food, our country had to face this crisis at some point. Fuel was scarce. Food prices went up,” he said, adding that international crises such as Russia’s war in Ukraine have exacerbated the situation.
 
Wickramasinghe expressed hope that the report on debt restructuring and sustainability will be submitted to the IMF by August. Once an agreement is reached, a comprehensive four-year loan assistance program will be prepared, Wickramasinghe said.