Sri Lanka has no easy choices left as it looks to dig itself out of its economic mess. Outright default or a financing deal with China remain options, but the government appears to be favouring an agreement with the IMF. The policy tightening and structural reforms that Sri Lanka would need to agree in return would lead to a sharp economic slowdown in the near term but then put the economy on a more secure footing. A key question is whether Sri Lanka would stick to the deal once the immediate crisis had passed.
Commodities Drop-In (24 March, 11:00 EDT/15:00 GMT): Our Commodities team will be exploring how the war in Ukraine is shaking up commodity markets, from oil to wheat, while tackling some of the big market questions – not least whether we’re in for 1970s-style oil supply shocks. Register here.
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