- Announces temporary suspension of repayment of all external debt as of 12 April
- Pre-emptive negotiated default informed to all creditors
- Interested creditors can claim outstanding in rupees
- New credit facilities and any amounts disbursed under existing credit facilities after 12 April are excluded and will be serviced normally
- Finance Ministry says move only as last resort to prevent further deterioration of SL’s financial position; will help source essential imports
- Treasury Secretary and CBSL Chief tell journalists move follows impossibility of external debt servicing and entire $ 51 b worth external debt not being sustainable
- SL has nearly $ 6 b of debt servicing this year and $ 25 b till 2026
- Say ‘orderly and consensual’ restructuring of external debt obligations consistent with upcoming economic assistance program supported by IMF; help from other multilateral and bilateral partners sought
- Rating agencies to downgrade Sri Lanka to Restrictive or Selective default status
(I wonder if this is just the first…)