Private lenders are at it again.  

Debt negotiations in Sri Lanka are now at a crucial stage. But some of the world’s most powerful hedge funds and other investors are holding up vital help for the crisis hit country.  

We’ve seen how this works. Private lenders like BlackRock held the future of Zambia’s economy for ransom last year – and now we are seeing a similar story for Sri Lanka. 

Private lenders are owed half of Sri Lanka’s debt payments so must play their part.

Last week we were in the news, together with a high-profile group of 182 economists and experts calling for private lenders to stop preventing a deal that would help restructure the debt.

Join with people all over the world taking a stand and help get the word out.

Why are Sri Lanka and so many other countries facing debt crisis?  

Today, Sri Lanka owes about $51bn in overseas debt. Spiralling import prices for food, fuel and rising interest rates have pushed the country to the brink, following unwise borrowing for large infrastructure projects by the Rajapaksa regime. This debt crisis has been years in the making but has been triggered by recent economic turmoil.    

Sri Lanka on its own cannot get out of the crisis, the country needs much greater international support. All of Sri Lanka’s creditors, especially private lenders must cancel the debt. 

Sri Lanka is one of several countries which have defaulted on external debt, or are seeking a debt restructuring, since the Covid pandemic and recent economic crisis began.  

Ghana defaulted on it's debts in December, following Lebanon, Suriname, Ukraine and Zambia. With global interest rates increasing and widespread recessions expected in 2023, many more countries could follow. 

Read more and help spread the word by sharing the article.

Thank you for all you do.
Best Wishes
Eva
Debt Justice, formerly Jubilee Debt Campaign

PS You can read the full expert's statement here