ISMAIL LAGARDIEN: Why bankrupt Sri Lanka will continue to exist, unlike insolvent companies
Bailouts, the right to exist and the resilience of domestic institutions allow failed states to keep going
At end-May Sri Lanka was effectively bankrupt. While the fallout is devastating for the citizens of the island state, several lessons can be learnt from it, and many particularly interesting questions emerge about the very idea that a state can go bankrupt.
These questions usually have to do with why it is that when a corporation goes bankrupt it typically goes out of business, but when a country goes bankrupt it does not cease to exist...
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