The Sri Lankan government on Tuesday announced it is defaulting on all its external debt.

The government had earlier announced it had appointed a panel on restructuring foreign debt amid the deepening economic crisis.

The island nation has been hit by rising inflation and fuel crisis. Sri Lanka's economy was hit badly during the coronavirus pandemic as the tourism industry was hit amid the lockdown two years ago.

<a href="https://www.wionews.com/south-asia/sri-lankan-pm-mahinda-rajapaksa-says-government-is-working-to-overcome-economic-crisis-470293">Also Read:&nbsp;Sri Lankan PM says government working to overcome economic crisis</a>

"Sri Lanka has decided to suspend normal debt servicing of all affected debts for an interim period pending an orderly and consensual restructuring of those obligations in a manner consistent with an economic adjustment program supported by the IMF," the country's finance ministry said.

Rating agencies had earlier warned of a potential default on its $51 billion foreign debt.&nbsp;

Watch:&nbsp;Sri Lanka running out of life-saving medicines

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In a letter stating its interim policy on servicing external public debt, the government said the COVID-19 pandemic and the Ukraine war had "eroded Sri Lanka's fiscal position" with its normal servicing of external public debt obligations becoming "impossible".

"Although the government has taken extraordinary steps in an effort to remain current on all of its external indebtedness, it is now clear that this is no longer a tenable policy and that a comprehensive restructuring of these obligations will be required," it added.

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11,000 MT rice from <a href="https://twitter.com/hashtag/India?src=hash&amp;ref_src=twsrc%5Etfw">#India</a> reached <a href="https://twitter.com/hashtag/Colombo?src=hash&amp;ref_src=twsrc%5Etfw">#Colombo</a> on board ship Chen Glory today ahead of New Year celebration by people of 🇱🇰. 16,000 MT rice supplied under 🇮🇳's multi-pronged support to 🇱🇰 in the past week alone.These supplies which mark the special bond between 🇮🇳&amp;🇱🇰 will continue. <a href="https://t.co/PF3yE626hl">pic.twitter.com/PF3yE626hl</a>
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Amid the economic crisis, the Rajapaksa's cabinet had resigned en masse after people took to the streets to protest against rising&nbsp;prices.

The Lankan president had imposed a state of emergency and requested members of political parties to join the cabinet, however, it was ruled out by the opposition members.

The government said it is seeking financial help from other multilateral and bilateral partners including the IMF.

(With inputs from Agencies)

The Sri Lankan government on Tuesday announced it is defaulting on all its external debt. The government had earlier announced it had appointed a panel on restructuring foreign debt amid the deepening economic crisis.

The Sri Lankan government on Tuesday announced it is defaulting on all its external debt. The government had earlier announced it had appointed a panel on restructuring foreign debt amid the deepening economic crisis. The island nation has been hit by rising inflation and fuel crisis. Sri Lanka's economy was hit badly during the coronavirus pandemic as the tourism industry was hit amid the lockdown two years ago. Also Read: Sri Lankan PM says government working to overcome economic crisis "Sri Lanka has decided to suspend normal debt servicing of all affected debts for an interim period pending an orderly and consensual restructuring of those obligations in a manner consistent with an economic adjustment program supported by the IMF," the country's finance ministry said. Rating agencies had earlier warned of a potential default on its $51 billion foreign debt. Watch: Sri Lanka running out of life-saving medicines In a letter stating its interim policy on servicing external public debt, the government said the COVID-19 pandemic and the Ukraine war had "eroded Sri Lanka's fiscal position" with its normal servicing of external public debt obligations becoming "impossible". "Although the government has taken extraordinary steps in an effort to remain current on all of its external indebtedness, it is now clear that this is no longer a tenable policy and that a comprehensive restructuring of these obligations will be required," it added. 11,000 MT rice from #India reached #Colombo on board ship Chen Glory today ahead of New Year celebration by people of 🇱🇰. 16,000 MT rice supplied under 🇮🇳's multi-pronged support to 🇱🇰 in the past week alone.These supplies which mark the special bond between 🇮🇳&🇱🇰 will continue. pic.twitter.com/PF3yE626hl — India in Sri Lanka (@IndiainSL) April 12, 2022 × Amid the economic crisis, the Rajapaksa's cabinet had resigned en masse after people took to the streets to protest against rising prices. The Lankan president had imposed a state of emergency and requested members of political parties to join the cabinet, however, it was ruled out by the opposition members. The government said it is seeking financial help from other multilateral and bilateral partners including the IMF. (With inputs from Agencies)

Sri Lanka defaulting on all its external debt: Rajapaksa government

Reports claim the Sri Lankan government is arranging millions of dollars in payment in order to import 40,000 tonnes of diesel as the country faces a massive fuel shortage.

Sri Lanka has been hit by a fuel crisis for the past few months with its economy hit hard due to the coronavirus pandemic as foreign exchange has run&nbsp;short.

The island nation reportedly has just six days of diesel left since the country does not have enough foreign exchange to pay for fuel imports. The country's national petrol corporation has been rationing distribution just enough to keep pumping stations operating in the country.

<a href="https://www.wionews.com/south-asia/sri-lanka-getting-closer-to-india-to-deal-with-chinese-debt-trap-454776">Also Read:&nbsp;Sri Lanka getting closer to India to deal with Chinese 'debt trap'</a>

The fuel crisis has led to power supply shortages in the country with residents experiencing daily load shedding as thermal power stations have been hit. Reports claim fuel stations have been running dry amid the shortage.

According to Sri Lanka's energy minister Udaya Gammanpila, the country is unable to pay for the two shipments of fuel due to the acute shortage of forex reserves.

Ceylon Petroleum Corporation (CPC) had said last week it was unable to buy fuel from abroad due to economic condictions in the country.

The Indian Oil Corporation had sent 40,000 metric tonnes of diesel and petrol to Sri Lanka earlier this month even as the Indian government had announced a $900 million loan to Sri Lanka.

The country has also witnessed food shortage and rising inflation with its key industry tourism hit badly due to the coronavirus pandemic in the last two years.

(With inputs from Agencies)

Reports claim the Sri Lankan government is arranging millions of dollars in payment in order to import 40,000 tonnes of diesel as the country faces a massive fuel shortage.

Reports claim the Sri Lankan government is arranging millions of dollars in payment in order to import 40,000 tonnes of diesel as the country faces a massive fuel shortage. Sri Lanka has been hit by a fuel crisis for the past few months with its economy hit hard due to the coronavirus pandemic as foreign exchange has run short. The island nation reportedly has just six days of diesel left since the country does not have enough foreign exchange to pay for fuel imports. The country's national petrol corporation has been rationing distribution just enough to keep pumping stations operating in the country. Also Read: Sri Lanka getting closer to India to deal with Chinese 'debt trap' The fuel crisis has led to power supply shortages in the country with residents experiencing daily load shedding as thermal power stations have been hit. Reports claim fuel stations have been running dry amid the shortage. According to Sri Lanka's energy minister Udaya Gammanpila, the country is unable to pay for the two shipments of fuel due to the acute shortage of forex reserves. Ceylon Petroleum Corporation (CPC) had said last week it was unable to buy fuel from abroad due to economic condictions in the country. The Indian Oil Corporation had sent 40,000 metric tonnes of diesel and petrol to Sri Lanka earlier this month even as the Indian government had announced a $900 million loan to Sri Lanka. The country has also witnessed food shortage and rising inflation with its key industry tourism hit badly due to the coronavirus pandemic in the last two years. (With inputs from Agencies)

Sri Lanka battles fuel shortage amid foreign exchange crisis

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Sri Lanka defaulting on all its external debt: Rajapaksa government

Sri Lanka battles fuel shortage amid foreign exchange crisis