The Finance Ministry of Sri Lanka today announced it would default on its US$51 billion external debt pending a bailout from the International Monetary Fund.
The finance ministry said creditors, including foreign governments that had lent to the South Asian nation, were free to capitalise any interest payments due to them from Tuesday afternoon or opt for payback in Sri Lankan rupees.
Press Release: Interim Policy Regarding the Servicing of Sri Lanka's External Public Debt
