Sri Lanka economic crisis: "Last Resort" is to default on its USD 51 billion external debt

Colombo : Sri Lanka is dealing with the worst economic crisis since Independence and the island nation has announced that it will be defaulting on its USD 51 billion external debt, calling it a "last resort".

Due to continuous shortage of essential goods, the nation is dealing with complete blackouts and inflated prices of food and fuel.

The government announced that they are taking "the emergency measure as a last resort to stop further deterioration of the financial situation of the island nation."

At the time of financial crisis, India and China are offering credit line to the nation to buy essential commodities from them.

Meanwhile, 11,000 MT of rice from India reached Colombo before New Year celebrations in the country. "This consignment comes under the $1 billion credit line extended by India. Earlier, 16,000 MT have been supplied under this credit line," said Eldos Mathew Punnoose.