Sri Lanka Enters Default and Warns of Surge in Inflation

Sri Lanka has entered a preemptive default on its foreign debt, as announced by the central bank governor. The government halted foreign debt payments to conserve dollars for essential imports like food and fuel. This situation is part of a broader trend affecting emerging markets, driven by a strong dollar and rising food costs. The default was anticipated and priced into the markets, but it highlights the vulnerability of many emerging markets to inflation and economic pressures. More political unrest and defaults are expected in these regions throughout the year.

How does the situation in Sri Lanka relate to broader emerging market trends?

What predictions are made about political unrest and defaults in emerging markets for the year?