Ukraine Crisis Risks Pushing Sri Lanka Closer to Default
- Russia key buyer of Sri Lanka tea exports; top tourism source
- Inflation is Asia’s fastest; 2030 dollar bond drops to record
Fishermen prepare a net on a beach in Galle, Sri Lanka.
Photographer: Buddhika Weerasinghe/Bloomberg
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With Covid shutting off tourism from much of the West, Russia and Ukraine had become an increasingly important source of foreign currency for Sri Lanka. The conflict threatens to turn off that tap as key bond repayments come due.
Almost a quarter of all tourist arrivals into Sri Lanka this year were from Russia and Ukraine -- rising to 30% if you include Poland and Belarus, official data show. Russia, which was the third-biggest buyer of Sri Lankan tea over the past two years, rose to second place in January.