Sri Lanka is in a debt crisis due to Pompeo’s story

The value of Sri Lankan government bonds in the international arena has plummeted since US Secretary of State Mike Pompeo blamed China during his visit to Sri Lanka.

Reuters reported yesterday (29) that the face value of Sri Lanka’s bonds, which had been declining due to the Kovid 19 epidemic, had dropped to 40% with Pompeo’s opposition to China. As a result, Sri Lanka’s foreign debt will be in serious crisis, according to a Reuters report.

The US Secretary of State, who also visited Sri Lanka during his Asian tour, sharply criticized China during a joint press conference with the Sri Lankan Foreign Minister on Wednesday (28). The Chinese Communist Party described the Secretary of State as a predator who devoured many countries, including Sri Lanka, and used the words dictatorship, lawlessness and bad dealings to attack China.

Reuters quoted data from TradeWeb, a well-known US financial service, as saying that US $ 2022 bonds had fallen by 50 cents since the US Secretary of State’s statement on Wednesday.

In addition, bond limits in the 2025, 2026, 2027 and 2028 segments have all fallen by 55 cents each.