Sri Lanka’s central bank raised borrowing costs by 700 basis points amid economic and political turmoil that has engulfed the nation and left President Gotabaya Rajapaksa with a minority in parliament.
The South Asian country has seen mass protests as it suffers food shortages, soaring prices and power cuts. It is due to start talks with the International Monetary Fund (IMF) next week on a loan program to get its economy back on track.
"We must look at how to structure the $1 billion international sovereign bond payment maturing in July. We must go to the IMF, there is no other solution that I can see," said Ali Sabry.