Thread by @DefaultLk

Cabraal suggests a 'do-over' of one of the same catastrophic mistakes that led to #DefaultLK

What happened the last time and should we let this happen again?
#EconomicCrisisLK

1/ Remittances dried up as foreign earners moved money to a grey market, massively undermining confidence in the local banking system. (2/4)

2/ Our dollar inflows from remittances are finally starting to recover, and with a critical period ahead, forcing further forex shortages will lead to massive shortages on the ground as well. (3/4)

3/ We have no usable reserves to peg the currency with which means any hard fought breathing space from debt suspension and Indian credit lines will have to be used for a nonsensical peg again. (4/4)

For more details check our timeline for #DefaultLK

default.lk/2022/04/23/roa…