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Sri Lanka

Sri Lanka to temporarily suspend debt payments: central bank chief

Crisis-hit nation to focus on essential imports as it eyes IMF talks next week

Nandalal Weerasinghe, the newly appointed governor of Sri Lanka's central bank, insists the payment stoppage will be on "a temporary basis until we come to an agreement with creditors."   © Reuters

COLOMBO (Reuters) -- Sri Lanka will temporarily suspend foreign debt payments to avoid a hard default, the central bank governor said on Tuesday, with its limited foreign reserves required for imports of essential items such as fuel.

"It has come to a point that making debt payments are challenging and impossible. The best action that can be taken is to restructure debt and avoid a hard default," Governor P. Nandalal Weerasinghe told reporters.

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