Courtesy The Straits Times WASHINGTON (AFP) – The IMF hopes unrest in Sri Lanka will be resolved soon so that aid talks that were interrupted can resume, a fund spokesman said on Thursday (July 14). Formal discussions on a new loan programme for the cash-strapped nation began last month but were thrown off course by the political upheaval […]

Priyantha Hettige Courtesy Island Millions of Sri Lankans are anxiously waiting to see what actions will be taken to make life bearable again. If we follow the example of successful countries, we see how they have exploited their opportunities, and used the wealth created, not to import cars and go on luxury trips abroad, but […]

Courtesy Adaderana Former Central Bank Governor Arjuna Mahendran, wanted by Sri Lankan authorities over the bond scam, speaking to CNN Philippines about the island nation’s crisis situation said the government of Sri Lanka is finding it difficult to persuade lenders. In response to a question on the events that led to the collapse of Sri […]

Courtesy multipolarista.com Sri Lanka owes 81% of its external debt to US and European financial institutions and Western allies Japan and India. China owns just 10%. But Washington blames imaginary Chinese debt traps” for the nation’s crisis, as it considers a 17th IMF structural adjustment program. Facing a deep economic crisis and bankruptcy, Sri Lanka […]

Courtesy Hiru News COLOMBO, July 11 (Reuters) – Sri Lanka’s central bank governor signalled on Monday that he would stay in the job but warned that prolonged political instability in the country may delay progress on negotiations with the International Monetary Fund for a bailout package. “Political instability might delay the progress we have been […]

Andrew Korybko Courtesy CGTN Farmers take part in an anti-government protest demanding the resignation of Sri Lankan President Gotabaya Rajapaksa over the country’s ongoing economic crisis in Colombo, Sri Lanka, July 6, 2022. /VCG Sri Lankan Prime Minister Ranil Wickremesinghe declared his country “bankrupt” on Tuesday, as a result of the island’s worst-ever economic crisis since […]

Courtesy Adaderana Sri Lanka’s headline inflation is expected to rise to 70 per cent in the coming months from the current level of 50%, the Governor of Central Bank of Sri Lanka, Dr. Nandalal Weerasinghe says. His remarks came during a media briefing convened in Colombo to announce the Central Bank’s 5th monetary policy review […]

Sri Lankans have taken to the streets over an acute shortage of essentials including food, fuel and medicines – Copyright AFP – Sri Lanka’s inflation hit a ninth consecutive record in June, official data showed Friday, rising to 54.6 percent a day after the IMF asked the bankrupt nation to rein in galloping prices and […]

Courtesy Adaderana The Embassy of Japan in Colombo today (July 01) categorically denied a media report which stated that Japan would not support Sri Lanka at the moment due to mismanagement of funds. According to an article published by a local newspaper, the Ambassador of Japan to Sri Lanka reportedly mentioned this during a meeting […]

Courtesy The Daily Star Sri Lanka should stamp out corruption and substantially raise taxes to rescue its economy, the International Monetary Fund said Thursday after bailout talks with the bankrupt island nation. Representatives from the global lender of last resort have just concluded a 10-day visit to the capital Colombo to map out a resolution […]

By Hussein Askary Courtesy The Global Times The global inflationary crisis in 2021 and more dramatically in 2022 triggered a Sri Lankan default on payment of $78 million in matured foreign bonds in April 2022. On May 18, the Central Bank of Sri Lanka declared that the country was in a preemptive default status. Political […]

Courtesy Adaderana The talks with Sri Lankan authorities made significant progress” on defining a macroeconomic and structural policy package, the mission team of the International Monetary Fund (IMF) said in a statement issued upon concluding its visit to the island nation. An IMF mission team led by Peter Breuer and Masahiro Nozaki visited Colombo from June 20 […]

Courtesy Adaderana Sri Lanka’s exports recorded the USD 5 billion mark in the first five months of this year, according to the Export Development Board (EDB). Earnings from the merchandise exports increased by 9.9 % y-o-y to US$ 980.2 million in May 2022 as per the data released by the Sri Lanka Customs.  This was […]

Courtesy The Island Mr. Ajith Nivard Cabraal, twice Central Bank Governor and former State Minister for Finance, issued the following media statement last week on exchange rate flexibility. The decision to allow the Sri Lankan Rupee (LKR) to be flexible” from March 7, 2022 onwards is sometimes described by certain persons as being a unilateral” […]

By Nimal Gunatilleke Courtesy The Island Figure 1. Sri Lanka’s foreign debt from 2000 -2020 ( from https://www.reuters.com/markets/rates-bonds/sri-lanka-edge-debt-burden-mounts-2022-01-17/) As a layman in the subject of political economy, nonetheless interested in discerning the real background to the historic debt crisis that Sri Lanka is undergoing at present, I have been reading many reports, including expert views, […]

BY Nimal Gunatilleke  Courtesy The Island From left : Ms. Amena Arif, Country Manager of Sri Lanka and Maldives, IFC. Archil Mestvirishvili, Deputy Governor, National Bank of Georgia. Ethiopis Tafara, Vice President, MIGA Lay Rachana, Sustainable Finance Committee Chair, Association of Banks in Cambodia, Deputy General Manager/ Chief Risk Officer of FTB Dr. P Nandalal […]

by: Simon Wilson Courtesy MoneyWeek Sri Lanka has been hit by a triple whammy of economic shocks and has gone to the IMF for a bailout. It may just be the first domino to fall in a global debt crisis. Sri Lanka is undergoing a full-scale economic collapse and political crisis, with every chance of further […]

by: Jonathan Compton Courtesy MoneyWeek Rising interest rates and soaring inflation will leave many governments with unsustainable debts. Get set for a wave of sovereign defaults, says Jonathan Compton It is unlikely that Barbados, Lebanon or Sri Lanka ever enters your investment thinking. Perhaps now they should. For although all are minnows in a sea of […]

Courtesy Outlook Prime Minister Ranil Wickremesinghe, who took office in May, was emphasising the monumental task he faces in turning around an economy he said is heading for rock bottom” Sri Lanka’s prime minister says the island nation’s debt-laden economy has collapsed” as it runs out of money to pay for food and fuel. Short […]

Courtesy Adaderana The Government of India, as a close friend of Sri Lanka, will extend its fullest support to the island nation in overcoming the current difficult situation, Indian Foreign Secretary Vinay Kwatra told President Gotabaya Rajapaksa today (June 23). The Indian Foreign Secretary made these remarks during a meeting with President Gotabaya Rajapaksa at […]

Courtesy Adaderana Finance Minister of India Nirmala Sitharaman has assured Sri Lanka of her fullest support” and cooperation for its recovery from the ongoing economic crisis. Sitharaman conveyed the assurance to Sri Lankan High Commissioner Milinda Moragoda when the envoy met her on Monday. The Finance Minister of India assured the high commissioner of her […]

Courtesy Adaderana The overall rate of inflation as measured by the National Consumer Price Index on Year-on-Year basis is 45.3% in May 2022, according to Sri Lanka’s Department of Census and Statistics.  The Department of Census and Statistics (DCS) on Tuesday released the National Consumer Price Index (NCPI) and the inflation rate for the month […]

Courtesy Adaderana The government of the United States has announced the third tranche of new funding today to address the immediate needs of people hardest hit by the economic crisis in Sri Lanka. This humanitarian assistance, totalling USD 5.75 million, will provide cash assistance, short-term jobs, and agriculture supplies such as seeds directly to crisis-affected […]

BY SHENALI WADUGE  Sri Lanka’s economic debacle is a collective result of embracing capitalist consumerism, importing more than exporting, spending more than earning, taking loans to continue artificial lifestyle & taking more loans to pay the loans & not utilizing loans for viable alternative return-on-investments. Alongside this reality was another more important & ignorant fact. Elected […]

Courtesy Hiru News Sri Lanka could have avoided its current economic turmoil if it had gone to the International Monetary Fund (IMF) for a bailout sooner, the country’s central bank governor says. Central bank governor Nandalal Weerasinghe told BBC Newsnight that the delay in seeking outside help was a mistake. The country has said it needs […]

By P.K.Balachandran Courtesy NewsIn.Asia Colombo, June 15: On the face of it, China appears to be shedding its aloofness and trying to create the impression that it is also helping Sri Lanka overcome the current grave economic crisis. It says that it has pumped in US$ 76 million so far. But that sum pales into […]

Feng Guoquan Courtesy CGTN Sri Lanka is in a dire situation. Known as the “Pearl of the Indian Ocean,” the country is facing the worst economic crisis since independence in 1948. Western media has taken this opportunity to hype up the so-called Chinese debt trap, alleging that Sri Lanka is on the verge of economic […]

Courtesy The Daily Mirror MP Dr. Harsha De Silva said that Sri Lanka will have to wait until the end of this year to obtain a loan from International Monetary Fund (IMF). Even though staff level meetings are underway it’s monetary board has to approve the loan. “When I had a discussion with the Japanese […]

Courtesy The Daily News Spokesman Rice said it’s too early to discuss potential financing Says can’t affirm when staff-level agreement will be reached either Acknowledges SL faced with very difficult economic condition, severe balance of payment problems In-person mission due in Colombo in coming weeks While the government is looking to firm up the negotiations […]

By Shamindra Ferdinando Courtesy The Island Speaker Mahinda Yapa Abeywardena has recommended the release of information about the Monetary Board proceedings to restore public confidence in the handling of public finance. He has made this recommendation in a letter dated 08 June to President Gotabaya Rajapaksa. Referring to the recent shocking disclosure of politically-motivated decisions […]