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Sri Lanka has officially defaulted on its external debt, experiencing shock from a succession of civil unrests and inefficient economic management. At the moment, there is a widespread shortage of food and energy in the country, and the strongest inflation is raging. The governor of the central bank of Sri Lanka, Nandalal Virasinghe, said that the peak of inflation in the country is expected to be around 40%. In addition, the national currency of the country is falling uncontrollably. The combination of all these factors led to the fact that the country was overwhelmed by a wave of protests and violence. Sri Lanka became the first country to officially default on its debt in 2 years. At the same time, economists are confident that it is unlikely to be the last in 2022, given the rapid rise in world prices for food and energy. The authorities of the South Asian island state have already begun negotiations on debt restructuring with the International Monetary Fund. The progress of the negotiations will mainly depend on the position of China, whose state-owned banks are the largest direct creditors of Sri Lanka.
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