INSUBCONTINENT EXCLUSIVE:
The island nation was meant to pay about $78 million in interest to its bondholders on Monday -- until, of course, the government said last
week it would halt foreign debt service to preserve cash for food and fuel imports
statement.Sri Lanka has been thrust into uncertainty as protesters angered by sky-high inflation and lengthy power cuts called for the
resignation of President Gotabaya Rajapaksa and his brother, Prime Minister Mahinda Rajapaksa
some curbs on his sweeping executive powers.The nation was supposed to pay $36 million in interest on a bond maturing in 2023 and $42.2
million on a 2028 note on Monday, its first major bond obligations since the announcement of suspended payments, according to Bloomberg data
It leaves the nation in a tricky spot, tumbling toward a hard default as political turmoil and social unrest raise risk.The extra yield
Treasuries has risen to 33.4 percentage points, according to JPMorgan Chase - Co
data, well above the 10-percentage point threshold for distress
It follows cuts by S-P to CC and by Fitch to C, which have both warned of further downgrades to default.
Source:
This article first appeared/also appeared in https://adaderana.lk
