Look no further than Sri Lanka as a warning sign," said IMF Managing Director Kristalina Georgieva on Saturday. Sri Lanka is struggling to pay for crucial imports like food, fuel and medicine for its 22 million people as it battles a foreign exchange crisis. Over the years, Sri Lanka had built up a huge amount of debt - last month, it became the first country in the Asia Pacific region in 20 years to default on foreign debt. These political failures are at the heart of Sri Lanka's economic collapse, and until they are remedied through constitutional change and a more democratic political culture, Sri Lanka is unlikely to escape its current nightmare." Laos, which is already heavily in debt, is struggling to repay those loans or or pay for imports like fuel.

Source: Daily Nation July 18, 2022 09:24 UTC