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Sri Lanka to default on debt, no money for fuel, says power minister

An economic crisis unprecedented in Sri Lanka's history since independence in 1948 has led to a critical shortage of foreign exchange

Sri Lankan soldiers stand guard next to burnt buses a day after clashes between government supporters and anti-government protesters in Colombo (Photo: AP/PTI)
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Sri Lankan soldiers stand guard next to burnt buses a day after clashes between government supporters and anti-government protesters in Colombo (Photo: AP/PTI)

Reuters Colombo
Sri Lanka is expected to be placed into default by rating agencies on Wednesday after the non-payment of coupons on two of its sovereign bonds, while the energy minister said the country had run out of money to pay for fuel.

An economic crisis unprecedented in the country's history since independence in 1948 has led to a critical shortage of foreign exchange, that saw it miss two coupon payments on sovereign bonds on April 18.

Sri Lanka has already said it is unable to make the coupon payments, and a 30-day grace period ends on Wednesday.

S&P has said the ratings on the

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First Published: May 18 2022 | 1:17 PM IST

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