Sri Lanka on Wednesday urged its citizens overseas to send home money to help pay for desperately needed food and fuel after announcing a default on its $51 billion foreign debt.
The island nation is in the grip of its worst economic crisis since independence in 1948, with severe shortages of essential goods and regular blackouts causing widespread hardship.
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Authorities are weathering intense public anger and spirited protests demanding the government’s resignation ahead of negotiations for an International Monetary Fund bailout.
Meanwhile, Central bank governor Nandalal Weerasinghe has said that he needed Sri Lankans abroad to “support the country at this crucial juncture by donating much needed foreign exchange”.
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The governor’s appeal comes a day after the government announced it was suspending repayments on all external debt, which will free up money to replenish scant supplies of petrol, pharmaceuticals and other necessities.
Weerasinghe said he had set up bank accounts for donations in the United States, Britain and Germany and promised Sri Lankan expatriates the money would be spent where it was most needed.
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In a statement, Weerasinghe said, “The bank assures that such foreign currency transfers will be utilised only for importation of essentials, including food, fuel and medicines.”
The default announcement will save Sri Lanka about $200 million in interest payments falling due on Monday, he said, adding that the money would be diverted to pay for essential imports.
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Weerasinghe’s appeal has so far been greeted with scepticism from Sri Lankans abroad.
“We don’t mind helping, but we can’t trust the government with our cash,” a Sri Lankan doctor in Australia told AFP, asking for anonymity.
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Speaking to AFP, a Sri Lankan software engineer in Canada said he had no confidence that the money would be spent on the needy.
“This could go the same way as the tsunami funds,” he told AFP, referring to millions of dollars the island received in aid after the December 2004 disaster, which claimed at least 31,000 lives on the island.