Sri Lanka goes bankrupt due to mismanagement

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Situasi Negara Sri Lanka source Tempo
Sri Lanka is facing a severe economic crisis. (Source: Tempo)

Sri Lanka, IO – One of the countries in South Asia, Sri Lanka, went bankrupt as it defaulted on its US$51 billion (Rp754.8 trillion) of external debt.

To survive, the Sri Lankan government has carried out a host of extreme measures such as closing down schools, ordering civil servants to work from home and suspending government services to conserve fuel, CNN Indonesia reported.

Sri Lanka’s dire situation is the latest in a series of crisis plaguing the country, from record high inflation and prolonged power outages. This has sparked widespread protests and calls for President Gotabaya Rajapaksa to step down.

Sri Lankan Prime Minister Ranil Wickremesinghe said his country needs US$75 million in foreign exchange to pay for essential imports. He also stated that the next few months will be the most difficult times for Sri Lankan citizens.