Would an international bailout save Sri Lanka’s economy? | Business and Economy News

Video Duration 25 minutes 00 seconds

From: Inside Story

International rating agencies warn the island nation is on the verge of defaulting on its debt.

Sri Lanka is facing its worst economic crisis since independence in 1948.

International rating agencies have warned that the island nation is on the verge of defaulting on its debt.

Its usable foreign currency reserves have plunged below $1bn, limiting Sri Lanka’s ability to repay loans.

Traders can’t access dollars to buy imports.

So what does this all mean for Sri Lankans?

Presenter: Adrian Finighan

Guests:

Nishan de Mel – Executive director and head of research at Verite Research

Jabin Jacob – Associate professor at the Department of International Relations and Governance Studies at Shiv Nadar University

Bhavani Fonseka – Senior researcher and attorney at law with the Centre for Policy Alternatives