Global academics call for Sri Lanka to default again after Ditwah

ECONOMYNEXT – Big names in the academic world and some macro-economists have called for Sri Lanka to default again after hurricane Ditwah hit the island, saying there is a ‘climate shock’. “The existing restructuring – modest, conditional and tied to uncertain macroeconomic outcomes – is inadequate to protect the vulnerable majority from recurrent climate and external shocks,” the academics said in a statement. “Therefore, we call for immediate suspension of Sri Lanka’s external sovereign debt payments, and a new restructuring that restores debt sustainability under the new circumstances.” Among the signatories is Joseph Stiglitz, one of several top advocates of…

Read the full article →