Rising risk of Sri Lankan banks defaulting on their obligations: S&P

This trend is expected to persist until the Sri Lanka's external situation stabilises, which may take time, S&P said in a statement

People wait in a queue to buy petrol at a fuel station, amid the country's economic crisis in Colombo (Photo: Reuters)
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People wait in a queue to buy petrol at a fuel station, amid the country's economic crisis in Colombo (Photo: Reuters)

Abhijit Lele Mumbai
There is a rising risk of Sri Lankan banks defaulting on their obligations, especially those in foreign currency, including deposits and trade finance products, rating agency Standard & Poor's said on Friday.

This trend is expected to persist until the sovereign's external situation stabilises, which may take time, S&P said in a statement.

ALSO READ - Need to restructure debts to be able to pay it back: Sri Lankan Bank Gov

The rating agency considers an entity to have defaulted if it doesn't make payments on its obligations within five business days of the due

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First Published: May 27 2022 | 10:31 AM IST

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