Sri Lanka’s economy is teetering on the edge as rating agencies prepare to declare the country in default after it missed critical debt payments. A 30-day grace period ended Wednesday, leaving the island nation unable to cover coupon payments on two sovereign bonds.
Chaos erupted in Colombo this week as residents queued for hours to buy fuel and kerosene. With inflation at record highs and power blackouts lasting up to 13 hours daily, Energy Minister Kanchana Wijesekera told Parliament: ‘We have no dollars left for petrol.’ The government has urged citizens to avoid fuel lines for the next 48 hours.
Over 22 million people now face food insecurity and economic instability. Auto-rickshaw driver Priyantha Rathnayake shared: ‘I’ve slept in my vehicle for three days straight just to keep my place in the queue.’ Analysts warn the crisis could ripple across South Asia’s economy.
Sri Lanka’s economy is teetering on the edge as rating agencies prepare to declare the country in default after it missed critical debt payments. A 30-day grace period ended Wednesday, leaving the island nation unable to cover coupon payments on two sovereign bonds. 
Chaos erupted in Colombo this week as residents queued for hours to buy fuel and kerosene. With inflation at record highs and power blackouts lasting up to 13 hours daily, Energy Minister Kanchana Wijesekera told Parliament: ‘We have no dollars left for petrol.’ The government has urged citizens to avoid fuel lines for the next 48 hours.
Over 22 million people now face food insecurity and economic instability. Auto-rickshaw driver Priyantha Rathnayake shared: ‘I’ve slept in my vehicle for three days straight just to keep my place in the queue.’ Analysts warn the crisis could ripple across South Asia’s economy.
