Courtesy Adaderana President Ranil Wickremesinghe has announced that a foundation is presently being established to advance Sri Lanka’s economy to a global level over the next five years by implementing green economic policies. The President made this statement while attending the ceremony held today (02 March) for the opening of Volta Auto Tec Engineering Private […]

Courtesy Adaderana World Bank Vice President for South Asia, Martin Raiser has reaffirmed the World Bank’s continued support to help navigate Sri Lanka’s navigate economic challenges, implement critical reforms, and chart a path towards a resilient and inclusive recovery. During his four-day visit to the island nation, which concluded on 28 February, Raiser met with […]

Courtesy Adaderana Borrowing costs hovering at two-decade highs to quell Asia’s fastest inflation rates will be in focus in Pakistan and Sri Lanka, as the crisis-gripped economies review monetary policy settings in decisions seen as key to winning multilateral bailout funds. The two monetary authorities are likely to take different tracks as price pressures have […]

Courtesy Hiru News Spot rupee traded at Rs.356.75 – 357.75 yesterday– Deal with IFC, rising prospects for IMF relief and eased forex conversion rules reinvigorate sentiments– Inflows from remittances and tourism sector revival also add a fillip– Currency dealers observe forex supply outstripping demand as of late– Sri Lanka returning to economic normalcy after a […]

Courtesy Adaderana China says it will continue to support relevant countries and international financial institutions to jointly play a positive role in helping Sri Lanka navigate the situation, ease its debt burden and achieve sustainable development. Chinese Foreign Ministry spokesperson Mao Ning made this remark in response to a question raised during a regular press […]

By Bandula Sirimana/Business Times Colombo, February 26: Although the total government external debt amounts to US$ 35.052 billion as at end of September 2022, only bilateral debt is considered for the debt restructuring process to release the IMF Extended Fund Facility, The bilateral creditors including China, India, Japan and Paris club member countries have expressed […]

MARTIN RAISER  Courtesy World Bank Blogs Sri Lanka is at a critical moment in its history. Years of economic mismanagement, weak governance, poor policy choices, and the impacts of external shocks such as the COVID-19 pandemic and the Russian invasion of Ukraine, plunged the country into its worst-ever crisis in 2022. Economic collapse and political […]

Courtesy Adaderana The International Finance Corporation (IFC), the World Bank’s investment arm, said it will provide Sri Lanka with a $400 million cross-currency swap facility to help fund essential imports. Three private banks will receive the facility to fund about 30% of imports, including medicine, food and fertiliser, the IFC said in a statement on […]

By Shivanthi ranasinghe Courtesy Ceylon Today Last week, there was a buzz over the unfounded report that the IMF may consider approving the USD 2.9 billion Extended Fund Facility (EFF), even without China’s assurances. This was politely refuted by the IMF Asia and Pacific Department Director Krishna Srinivasan, for he thinks the ideal way would be […]

Sasanka De Silva Pannipitiya Foreign Direct Investment (FDI) refers to investment made by foreign companies or individuals in the economy of another country. FDI can have a significant impact on the economy of the recipient country in several ways: 1.     Increased Capital: FDI brings much-needed capital to a country, which can be used to build […]

Courtesy The New Indian Express Sri Lanka’s economic crisis and sovereign default were the result of long-lasting fiscal indiscipline, weak institutions, lack of transparency and accountability and short-sighted economic policies. By PTI COLOMBO: The issues that led Sri Lanka to become an economic basket case in 2022 serve as a warning for other nations. When politicians […]

Courtesy The Daily Mirror EXIM Bank of China (Export-Import Bank) submitted a comprehensive program in its financial support document on January 19 to ‘strongly support’ Sri Lanka’s debt restructuring process with the International Monetary Fund (IMF) and it includes short, mid and long-term measures for debt treatment, a diplomatic source from the Chinese embassy said. […]

By Shivanthi ranasinghe Courtesy Ceylon Today The only progress vis-a-vis the prevailing economic crisis is the unfounded report that the IMF may consider approving the USD 2.9 billion Extended Fund Facility (EFF), fondly known as the bailout package”, even without China’s formal assurance of debt-restructuring support. Even if we do finally get IMF’s assistance, which we have […]

Courtesy Hiru News The Cabinet of Ministers at its meeting on Monday approved to service of 2.6 billion dollars in debt payments due in the first half of this year, whilst vesting the authorisation powers to the Treasury Secretary to provide the necessary funds. Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the post-Cabinet meeting […]

Courtesy Adaderana The Secretary to the Ministry of Finance and the Ambassador of Japan today (22 Feb.) signed an exchange of notes for a grant of USD 46 million. Accordingly, Finance Secretary Mahinda Siriwardena and Ambassador MIZUKOSHI Hideaki signed an exchange of notes for the USD 46 million grant to provide 20 million litres of […]

By N. S. Venkataraman Courtesy Eurasia Review Sri Lanka’s President Ranil Wickremesinghe has suggested that local government polls in Sri Lanka should be postponed, in view of the economic crisis faced by Sri Lanka. The government has explained the difficulty in mobilising necessary funds to hold elections. The Government Printer, too, informed that it was unable […]

උපුටාගැණීම  මව්බිම රටේ ශක්තිමත් ආර්ථිකයක් ගොඩනැගීමට නිවැරදි සැලැස්මක් තිබිය යුතු බව ත් වත්මන් ආණ්ඩුව ගෙන යන ආර්ථික වැඩපිළිවෙළ නිසා පසුගිය මාස කිහිපය තුළ පැවති ආර්ථික දුෂ්කරතා තරමක් අඩු වී ඇති බව ත් ජනාධිපති රනිල් වික්‍රමසිංහ පවසයි. මේ ආකාරයට බිඳවැටුණු රටකට සහය දීමට ජාත්‍යන්තර මූල්‍ය අරමුදල හැර ලෝකයේ වෙනත් කිසිදු ආයතනයක් නොමැති බව සඳහන් කළ ජනාධිපතිවරයා […]

Courtesy Adaderana Sri Lanka is tangled in the worst financial crisis in over seven decades, triggered by a severe shortage of foreign exchange that forced the country to annouce a suspension of foreign debt repayments in April 2022. Sri Lanka’s cabinet has approved loan repayments worth $2.6 billion in the first half of this year, […]

Courtesy Adaderana The Cabinet has approved the President’s proposal that the Secretary to the Treasury be given the authority to take all measures required pertaining securing the necessary funds within the set borrowing limit. As per the Appropriation Act No. 43 of 2022, a cap of Rs. 4,979 billion was set as the borrowing limit […]

Courtesy Adaderana The Export-Import Bank of China has provided Sri Lanka with a debt extension, China’s Foreign Ministry said on Monday, noting that China is willing to negotiate a medium- and long-term debt disposal plan with the country in a friendly manner, and do its best to promote Sri Lanka’s debt sustainability. The remarks come […]

Courtesy Adaderana Sri Lankan Minister of Ports, Shipping and Aviation Nimal Siripala de Silva has said the government will spend around USD132 million on port development projects. These investments would be made through revenue generated from port operations, the minister said on Saturday night. Speaking at an event in Colombo, the minister said the government […]

Courtesy The South China Morning Post To secure the bailout, the government is having to pursue economic reforms and tighten purse strings when inflation and recession are already making lives difficultYet reforms are necessary to restore – and restore confidence in – the economy in the long term. Sri Lanka remains in the throes of […]

Courtesy Adaderana President Ranil Wickremesinghe says reducing bank interest rates in relation to the gradual decline in inflation is currently under consideration. The Head of State further expressed hopes about receiving the USD 2.9 billion under the International Monetary Fund’s extended fund facility (EFF) program by March. His remarks came during a meeting at the […]

Courtesy MailOnline BEIJING (AP) – China expressed support for Sri Lanka ahead of a meeting Friday of government lenders to poor economies but did not say if it would help reduce a multibillion-dollar debt that has plunged the Indian Ocean nation into financial and political turmoil. Beijing is one of Sri Lanka’s biggest creditors after […]

Courtesy FXEMPIRE By Andrea Shalal WASHINGTON (Reuters) – Officials from China, India, Saudi Arabia and Group of Seven wealthy nations will participate in a first virtual meeting of a new sovereign debt roundtable on Friday, three sources familiar with the plans said on Monday. WASHINGTON (Reuters) – Officials from China, India, Saudi Arabia and Group […]

Courtesy The Daily Mirror Sri Lanka’s external reserves surpassed two billion dollars in January, reflecting gradual improvement in the foreign exchange conditions in the domestic market which was made possible due to a slew of tightening measures and also due to the acceleration in the foreign currency inflows, recently.  According to the latest data available, Sri […]

Courtesy The Daily Mirror The government insisted that only 2.6 percent of Sri Lanka’s total workforce of 4.64 million are subjected to the pay-as-you-earn (PAYE) income tax, with nearly half of the labour force receiving a less than Rs.30,000 monthly salary. The country’s workforce consists of 4,645,572 people. Forty-eight percent of the labour force or […]

Courtesy Adaderana Former International Monetary Fund (IMF) Resident Country Representative for Sri Lanka, Dr. Nadeem Ul Haque says that the Sri Lankan government needs to take steps to ensure efficiency when it plots the way forward for the country and cut down on the number of subsidies given to the public as well. He made […]

Courtesy The Daily Mirror A circular has been issued by the Inland Revenue Department exempting employees from paying PAYE tax on non-cash benefits such as for vehicles, fuel allowances, housing and medical benefits which have been provided to employees at their places of employment. This circular has been issued by the Commissioner General of Inland […]

Courtesy Adaderana President Ranil Wickremesinghe, in his capacity as the Minister of Finance, Economic Stabilization and National Policy, has instructed the Treasury Secretary to provide provisions only for essential government services.  The directive was issued in an attempt to maintain public services until the state revenue situation improves.  Accordingly, the list of expenditure to be […]