Sri Lanka in default first

Sri Lanka has defaulted on its debt for the first time in its history, as petrol stations run dry and protesters riot in the streets in its worst economic crisis since independence in 1948.

P Nandalal Weerasinghe, the country’s central bank governor, announced that Sri Lanka was in a “pre-emptive default” after the expiry of a 30-day grace period for missed interest payments on two of its sovereign bonds.

According to Moody’s, the credit ratings agency, it is the first default by an Asia-Pacific nation this century.

“Our position is very clear: until there is a debt restructure, we cannot repay,” Weerasinghe said, after the deadline passed for making US$78m of payments to international creditors.