Sri Lanka Risks Debt Default, Warns Largest Party

Sri Lanka's largest party warned Tuesday that the island could default on its debt as Moody's slashed its credit rating and a bitter power struggle dragged into a fourth week, Daily Mail reported. The South Asian nation has been gripped by an unprecedented political crisis since the president sacked his prime minister on October 26 and appointed former strongman Mahinda Rajapakse in his place. Ranil Wickremesinghe, the ousted premier and leader of the United National Party -- the largest single party in parliament -- refused to step down, declaring his sacking illegal. President Maithripala Sirisena then dissolved parliament and called snap elections for January 5 -- a decision later suspended by the Supreme Court. The parliament, restored by court order, voted twice to topple Rajapakse last week but he has also refused to step down, leaving Sri Lanka without a government since November 15. Read more