Defaulting debt repayment can have severe repercussions By Jayampathy Jayasinghe View(s): View(s):Sri Lanka has been running deficits over the decades following the post- independence period when the fiscal deficit was over 10 percent of the GDP. With low foreign inflows coupled with the COVID-19 pandemic, debt servicing has been a challenge, she added. As they are contractual obligations it can have serious repercussions in future when debt servicing is defaulted. Using foreign exchange to pay for debt servicing is not a good strategy. The private sector employees too were affected with their salaries reduced,” he said.

Source: Sunday Observer September 19, 2021 00:56 UTC