Sri Lanka is teetering on the edge of economic collapse after failing to meet debt payments on two sovereign bonds, with rating agencies poised to declare the nation in default. A critical 30-day grace period expired Wednesday, intensifying fears of a prolonged financial crisis.
The government confirmed it lacks funds to purchase fuel, triggering hours-long queues in Colombo as residents scrambled for petrol and kerosene. Power and Energy Minister Kanchana Wijesekera urged citizens to avoid fuel stations for 48 hours, stating: \"We currently have zero dollars to pay for shipments.\"
With inflation hitting record highs and daily power outages stretching up to 13 hours, 22 million Sri Lankans face acute food insecurity and crumbling public services. Auto-rickshaw driver Priyantha Herath told local media: \"I’ve slept in this line three nights just to get kerosene for my family’s stove.\"
The crisis underscores vulnerabilities in emerging markets, with economists warning of ripple effects across South Asia. Analysts predict urgent IMF negotiations may determine whether Sri Lanka stabilizes or enters a full-blown humanitarian emergency.
Reference(s):
Sri Lanka expected to be placed into default after missing payments
cgtn.com
