Amid Sri Lanka’s deepening economic crisis, Colombo Stock Exchange (CSE) has decided to temporarily shut for five working days starting Monday.

The country’s Securities and Exchange Commission (CSE) said in a statement that it is "of the view that it would be in the best interests of investors as well as other market participants if they are afforded an opportunity to have more clarity and understanding of the economic conditions presently prevalent, in order for them to make informed investment decisions."

Last week the country announced that it will default on its $51 billion external debt amid depleting foreign exchange reserves.

The island nation is facing its worst economic crisis since 1948—the year it gained independence. An acute shortage of essential items including food, fuel and medicines has hit the country.

The ongoing Russia-Ukraine crisis impacting fuel and commodity prices has further hit the island nation’s economy.

Meanwhile, Sri Lanka is now looking for financial assistance from multilateral lenders including the International Monetary Fund. It has also finally decided to increase tax rates. The IMF has prescribed structural reforms including overhauling the tax regime. Sri Lanka’s tax to GDP ratio is one of the lowest due to various populist measures undertaken by the Rajapaksa Gotabaya government.

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Now that Sri Lanka has defaulted on foreign debt, what happens now?