Comment on Sri Lanka Default Hints at Trouble Ahead for Developing Nations

Sri Lanka Default Hints at Trouble Ahead for Developing Nations

Sri Lanka’s impending default on $12.6 billion of overseas bonds is flashing a warning sign to investors in other developing nations that surging inflation is set to take a painful toll. The South Asian nation is set to blow through the grace period on $78 million of payments Wednesday, marking its first sovereign debt default since it gained independence from Britain in 1948.

 

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