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 […]

Courtesy Hiru News Sri Lanka’s Ministry of Finance signed an agreement with the EXIM Bank of India for a USD 55 million credit line to purchase 65,000 tonnes of urea from India, according to the Prime Minister’s office. The Secretary to the Ministry of Finance M. Siriwardena today (10) signed an agreement with EXIM Bank […]

Courtesy CNA LONDON: The International Monetary Fund (IMF) is planning a staff-level mission in the coming weeks to Sri Lanka “to engage on policy discussions on a programme”, the fund’s spokesman Gerry Rice said on Thursday (Jun 9) in Washington. The goal of the next mission will be to build on the technical discussions already […]

Courtesy Adaderana Former Secretary to the Ministry of Finance Mr. S.R. Attygalle says it is unreasonable to claim that the country lost nearly Rs. 500 billion due to the change in tax policies of the new government, as this was due to the loss caused by the import restrictions imposed, including the suspension of the […]

Courtesy Adaderana Prime Minister Ranil Wickremesinghe says he would do his utmost to secure the assistance of the International Monetary Fund for Sri Lanka by this September. The Sri Lankan Premier and Managing Director of the IMF Kristalina Georgieva have discussed the island nation’s current economic situation during a telephone conversation yesterday. The IMF chief […]

Courtesy News18 Sri Lanka has sought a USD 55 million loan from India for the procurement of urea amidst its worst economic crisis threatening a severe food shortage, an official said on Tuesday. Prime Minister Ranil Wickremesinghe had recently warned of a food crisis in the island nation due to the ongoing economic crisis. The Cabinet has […]

Courtesy The Daily Mirror CB pushed back on claims that it was another pegged exchange rate  Says inflows seen picking up, Fx conversions improve since restrictions on Open Accounts  Further easing in Fx rate is expected amid easing imports and with multilateral and bilateral funding kicking in  Staff-level agreement with IMF expected this month on […]

Courtesy Adaderana Countries around the world are facing recession as the Ukraine war hits economies already rocked by the Covid pandemic, the World Bank has warned. Less developed countries in Europe and east Asia face a major recession”, it said. The risk of high inflation and low growth – so-called stagflation” – is also higher, […]

T. M. R. Rasseedin General Secretary, Ceylon Federation of Labour (CFL) Member of Parliament Dr. Harsha de Silva in several talk shows over the electronic media persists in spreading a canard that Dr. N. M. Perera was the first to seek the assistance of the IMF for Sri Lanka. Nothing is further from truth than […]

By Rajiesh Seetharam Courtesy Ceylon Today   The IMF programme, raising interest rates, measures to curb parallel foreign exchange market are steps in the right direction, which may bring stability to the economy and help in importing essential goods, however structural reforms are necessary to bring long term economic sustainability to Sri Lanka, stated former […]

Courtesy Adaderana Sri Lanka seeks to secure around $5 billion in funding this year to cover repayments for fuel imports and other items bought through credit lines, and another $1 billion to bolster its foreign reserves, the prime minister’s office said on Thursday. The island nation is grappling with its worst financial crisis in over […]