Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Lebanese Health Ministry: 1 woman martyred, 11 wounded in Israeli strike on residential apartment in Nabatieh, South Lebanon.
Al Mayadeen's correspondent: Four civilians injured in Israeli strike that targeted house in Nabatieh al-Fawqa, South Lebanon.
Al Mayadeen's correspondent in South Lebanon: Israeli warplanes launch strikes on regions of al-Mahmoudiyah, al-Khardali
Al Mayadeen's correspondent in South Lebanon: Israeli aircraft execute series of strikes in Kfar Tibnit, South Lebanon.
Iranian ambassador in Beijing to Al Mayadeen: We hope that Europe and the US give up their illegal actions and authoritarian hegemony.
Al Mayadeen's correspondent: Israeli shelling targets displaced persons' tent in Al-Mawasi, Khan Younis, casualties were reported
IOF storm Jalazone camp, north of Al Bireh city in the occupied West Bank
Israeli media: A severe incident reported in Gaza some time ago
Israeli media: Military evacuation helicopters are transporting injured soldiers from Khan Younis
Israeli media: A security incident has been reported in Khan Younis, southern Gaza Strip

The Guardian: Experts warn hedge funds furthering Sri Lanka crisis

  • By Al Mayadeen English
  • Source: The Guardian
  • 9 Jan 2023 16:53
3 Min Read

Economic experts warn in a statement that hedge funds are holding back crisis relief to Sri Lanka, noting the latter could end up with a terrible deal.

  • x
  • Women queue in line in Colombo, Sri Lanka to buy kerosene (AP).
    Women queue in line in Colombo, Sri Lanka to buy kerosene (AP).

182 economists and development specialists from across the world claim that some of the most powerful hedge funds and other investors are delaying crucial aid to crisis-stricken Sri Lanka because of their adamant attitude in debt-relief negotiations following the Asian nation's $51 billion default last year.

The group of specialists maintained in a statement provided to The Guardian on Sunday that massive debt cancellation was required to give the economy a chance to recover, and that Sri Lanka will serve as a test case for the international community's readiness to address a looming global debt crisis.

According to the statement, “Debt negotiations in Sri Lanka are now at a crucial stage,” adding, “All lenders – bilateral, multilateral, and private – must share the burden of restructuring, with assurance of additional financing in the near term.”

The majority of Sri Lanka's external debt stock, the statement made to the Guardian revealed, is held by private creditors, who own over 40% of it in the form of international sovereign bonds. However, because of the higher interest rates attached to these bonds, private creditors acquire more than 50% of the country's external debt payments.

Related News

A true American horror story: The debt deal and the future of the US

Debt ceiling bill overwhelmingly passes US House

“Such lenders charged a premium to lend to Sri Lanka to cover their risks, which accrued them massive profits and contributed to Sri Lanka’s first-ever default in April 2022," the statement explained. 

"Lenders who benefited from higher returns because of the ‘risk premium’ must be willing to take the consequences of that risk,” the specialists added.

The 182 economists worry that Colombo would receive a terrible deal as a result of the harsh attitude taken by private creditors. The International Monetary Fund will only offer a loan after the Washington-based group is sure Sri Lanka's obligations are manageable.

With a looming widespread 2023 recession and increased global interest rates, the experts' statement highlighted that “The Sri Lankan case will provide an important indicator of whether the world – and the international financial system in particular – is equipped to deal with the increasingly urgent questions of sovereign debt relief and sustainability; and to ensure a modicum of justice in international debt negotiations."

Read more: Sri Lanka to join Russia's Mir system, resumes flights to Russia

  • debt default
  • IMF
  • Sri Lanka
  • Hedge funds

Most Read

Iranian President Masoud Pezeshkian attends a protest following the US attacks on nuclear sites in Iran, in Tehran, Iran, Sunday, June 22, 2025. (AP)

Iran declares victory as ceasefire forces Israeli retreat

  • Politics
  • 24 Jun 2025
Israeli workers survey the site where a missile launched from Iran struck in Haifa on Sunday, June 22, 2025. (AP)

True Promise 3, wave 20: 40 missiles launched, Kheibar-Shekan in first

  • Politics
  • 22 Jun 2025
Iran launches strikes on Israeli targets, despite alleged ceasefire

Iran victorious as ceasefire with 'Israel' takes effect

  • Politics
  • 24 Jun 2025
Iranian worshippers carry their country's flags in a protest to condemn Israeli attacks on multiple cities across Iran, after the Friday prayers ceremony in Tehran, Iran, Friday, June 20, 2025. (AP)

Iran warns of NPT withdrawal, Strait of Hormuz closure after US attack

  • Politics
  • 22 Jun 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
The commander of the Quds Force's Palestine Unit, Brigadier General Mohammad Said Izadi (Illustrated by Mahdi Rtail for Al Mayadeen English)
Politics

Who was Mohammad Said Izadi, head of the Quds Force's Palestine Unit?

Hezbollah's now-Secretary-General Sheikh Naim Qassem speaks during an interview with The Associated Press in Beirut's southern suburbs, Lebanon, July 2, 2024 (AP)
Politics

Sheikh Qassem praises Iran resilience in face of 'Israel', US

Al Houthi: Overthrowing Islamic Republic impossible
US & Canada

Sayyed Al Houthi: Overthrowing Islamic Republic of Iran impossible

Reproductive violence used as genocide tool in Gaza: UN
Politics

Reproductive violence used as genocide tool in Gaza: UN

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS