(Bloomberg Markets) -- The tiny Indian Ocean island of Sri Lanka is bankrupt. The government froze all foreign debt payments and ran out of dollars to buy food and fuel for its citizens. After miles-long queues for petrol, diesel, and other types of gas began crowding the streets, authorities shut down schools and public offices and asked people to work from home. Even with the lockdown, energy costs soared 128% in June from the previous month, and as of mid-July, overall inflation was forecast to accelerate to 70%. Public protests against inflation drove ­President Gotabaya Rajapaksa to flee the country; the International Monetary Fund told the new administration to present a plan for whittling down debt before the IMF disburses any bailout financing. —Jeanette Rodrigues

 

 

(Updates to remove final sentence of introduction that included Bloomberg function.)

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