The Central Bank has decided to suspend the repayment of foreign loans temporarily.
At a media briefing, Governor Dr. Nandalal Weerasinghe said that the foreign reserves in the country were very low and it was decided to use the money for the importation of essential commodities and fuel.
He said it would provide an opportunity to restructure the debt and prevent long-term default.
Sri Lanka’s foreign exchange reserves have now fallen to $ 1.93 billion ina background where Sri Lanka will have to repay $ 4 billion in foreign debt in 2022.