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** Enforcement of Covid-19 health guidelines urgently necessary ** Launch passengers have turned to buses after opening of the Padma Bridge. Empty launches are seen passing idle time at Sadar Ghat launch terminal on Tuesday. NN photo ** Cattle-loaded trucks easy prey to extortions ** US wants fair elections in BD:Envoy ** Experts say worst, substandard ** PM mulls area-based specific time power cuts to save fuel ** Blacksmiths passing busy time for Eid-ul-Azha ** Sri Lanka admits bankruptcy, crisis to drag through 2023 ** KFC Brings Texas BBQ Zinger in Town ** Niko graft case against Khaleda Zia, charge hearing deferred ** Tipu murder case, probe report on Aug 31 ** Teacher Utpal murder case, prime accused father confesses ** Bangladesh sends humanitarian assistance to Afghan people ** CEC is irrelevant for assuring free election unless parliament is dissolved ** Power generation falls, causing frequent load-shedding ** The Padma River is about to devour the Chawkrajpur Govt Primary School at Bagha, Rajshahi. The school is now five metres away from the erosion point. The headmaster of the school, Mujibur Rahman, urged the local administration to build an embankment so that the school could still be saved. The Upazila Education Officer, Mir Mamunur Rahman, said that the school could be shifted to a different place if the erosion situation demands so. As there was no embankment there, one kilometre road built at the cost of Tk 42 lakh at Chawkrajpur is already gone into the river. NN photo ** Illegal Indian cattle in Bangladesh market, local farmers frustrated ** Kushtia BCL leader sets himself on fire at Press Club ** Tanners set to procure about 1 cr pieces of rawhide despite fund crisis ** Bangladesh logs four month's highest 12 deaths from Covid ** We see no end to overwhelming lawlessness everywhere: Problem is muscle politics ** Remittance dips 15pc amid forex crisis ** Lawyer’s six bank accounts frozen ** CEC assures OECD envoys to hold inclusive, acceptable polls ** Exports hit record $ 52b in outgoing fiscal year **

Sri Lanka default hints at trouble ahead for developing nations

19 May 2022


Bloomberg :
Sri Lanka's impending default on $12.6 billion of overseas bonds is flashing a warning sign to investors in other developing nations that surging inflation is set to take a painful toll.
The South Asian nation is set to blow through the grace period on $78 million of payments Wednesday, marking its first sovereign debt default since it gained independence from Britain in 1948. Its bonds already trade deep in distressed territory, with holders bracing for losses approaching 60 cents on the dollar. The government said last month it would halt payments on foreign debt.
Sri Lanka's situation is unique in the way all debt crises are -- the particulars here involve an unpopular government run by an all-powerful family, the unresolved aftermath of a 30-year civil war and violent street protests. But the island's saga is starting to be seen as a bellwether for emerging markets where shortages exacerbated by inflation,  including record-high food costs globally, have the potential to roil national economies.
"The Sri Lanka default is an ominous sign for emerging markets," said Guido Chamorro, the co-head of emerging-market hard-currency debt at Pictet Asset Management, which holds Sri Lankan bonds. "We expect the good times to stop. Slowing growth and more difficult funding conditions will increase default risk particularly for frontier countries."

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