Top economists call for halt to Sri Lanka debt repayments after Cyclone Ditwah

Following the devastating Cyclone Ditwah in Sri Lanka, a group of 120 global economists, including Nobel laureate Joseph Stiglitz, are urging a halt to the country's debt repayments. The cyclone caused widespread destruction, claiming over 600 lives and destroying hundreds of thousands of homes. The economists argue that the disaster has severely impacted Sri Lanka's economy, straining its already limited fiscal resources after a debt restructuring in 2024. They propose a new restructuring to ensure debt sustainability, citing the need to address the environmental damage and avoid further borrowing. The group highlights that Sri Lanka's debt repayments were already high before the cyclone, consuming 25% of government revenue.

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