Sri Lanka suspends external debt payments, says needs money for essentials

Sri Lanka's central bank said on Tuesday it had become "challenging and impossible" to repay external debt, as it tries to use its dwindling foreign exchange reserves to import essentials like fuel.

The island nation's reserves have slumped more than two-thirds in the past two years, as tax cuts and the COVID-19 pandemic badly hurt its tourism-dependent economy and exposed the government's debt-fuelled spending.

Street protests against shortages of fuel, power, food and medicine have gone on for more than a month.

"We need to focus on essential imports and not have to worry about servicing external debt," Central Bank