Published by
Daily Financial Times
Daily Financial Times
By The Pathfinder Foundation with known net debt service payments of $ 6.6 billion this year and current fully usable official reserves of less than $ 1 billion (2-3 weeks of imports), Sri Lanka is confronted with both a cash flow problem and a debt problem. The liquidity problem is compounded by the fact that the only known additional external financing, at this point, are lines of credit from India ($ 1.5 b) and Pakistan ($ 200 m). These will certainly contain the depletion of reserves. They will not have a very material impact on the existing external financing gap, which is likely to be at…