Journalist Aya Iskandarani on Tuesday confirmed that Sri Lanka announced defaulting on all its external debt via AFP. She took her Twitter and wrote "Sri Lanka announces defaulting on all its external debt via @AFP. The country has been grappling with a severe economic crisis that has left people short on medicine, food, fuel, and electricity."
For unreserved Sri Lanka is presently facing a foreign exchange shortage which has led to a fuel, power, and gas shortage, and has sought the assistance of friendly countries for economic assistance. Sri Lanka is witnessing at least 10-hour daily power cuts. Sri Lanka's currency has been also devalued by almost SLR 90 against the US dollar since March 8. Sri Lanka's economy has been in a free fall since the COVID-19 pandemic due to the crash of the tourism sector.