Courtesy ODI,org Leading experts provide policy proposals to shift Sri Lanka’s trajectory from debt to growth ahead of crucial elections As Sri Lanka gears up for pivotal Presidential elections on 21 September, a timely new book, “Sri Lanka: from debt default to transformative growth“, provides a comprehensive roadmap to propel the nation beyond economic stabilisation […]

Democracy At Work On this week’s Economic Update, Professor Wolff devotes the entire program to explaining clearly and accessibly what government deficits are, why they occur, and who benefits from them. We show how deficits and debts reward corporations and the rich at the expense of the mass of employees. This show will equip our […]

Courtesy Adaderana The agreement for obtaining USD 300 million loan from the Asian Development Bank (ADB) for the implementation of power sector reforms and financial sustainability program has been signed by the Government of Sri Lanka and the ADB. The Government of Sri Lanka had discussions with the Asian Development Bank (ADB) to mobilize three […]

Courtesy CNA Sri Lanka must make further efforts to raise fiscal revenue if it is to maintain macroeconomic stability and restore debt sustainability, the International Monetary Fund said on Friday, after wrapping up a staff visit to the country. After September’s presidential election in the Indian Ocean nation, the global lender will discuss the timing […]

Courtesy The Statesman Sri Lanka’s economic recovery continues with real gross domestic product (GDP) posting three consecutive quarters of expansion, and growth accelerating to 5.3 per cent year-on-year in the first quarter of 2024, the International Monetary Fund (IMF) said on Friday. Sri Lanka’s economic recovery continues with real gross domestic product (GDP) posting three […]

Courtesy RTTNews Sri Lanka central bank lowered its policy rates unexpectedly by 25 basis points on Wednesday as inflation is expected to remain below the target over coming months. The Central Bank of Sri Lanka decided to reduce the Standing Deposit Facility Rate by 25 basis points to 8.25 percent and the Standing Lending Facility […]

The Homeless Romantic Ben Norton of Geopolitical Economy wrote an article that discusses the misleading accusations against China for Sri Lanka’s debt crises and economic instability. Contrary to popular belief, 81% of Sri Lanka’s external debt is owed to Western financial institutions and allies, while China holds only 10%. The West’s accusations are criticized as […]

Courtesy Adaderana Sri Lanka’s State Minister of Foreign Affairs Tharaka Balasuriya has said that India, and Sri Lanka are working to trade in national currencies, a development that comes even as both sides have been focusing on financial connectivity. Speaking to our diplomatic correspondent Sidhant Sibal, he said, it makes more sense to pay for […]

Courtesy Hiru News Sri Lanka’s earnings from tourism surged to over $1.5 billion in the first six months of 2024, marking a 77.9 percent increase year-on-year, according to the latest report from the Central Bank of Sri Lanka (CBSL). Tourist arrivals in the first half reached 1.01 million, reflecting a 61.7 percent rise compared to […]

Courtesy Adaderana In a recent interview, Governor of the Central Bank of Sri Lanka Dr Nandalal Weerasinghe addressed misconceptions regarding Sri Lanka’s total debt, clarifying that the increase from USD 96 billion in December 2023 to a projected USD 100 billion by March 2024 is largely due to exchange rate fluctuations rather than new borrowing. […]

Courtesy Adaderana Minister of Foreign Affairs and President’s Counsel Ali Sabri, has stated that the successful debt sustainability process with bilateral creditors will provide Sri Lanka with an advantage of approximately US $ 17 billion. The minister also stated that this situation will facilitate successful negotiations regarding international sovereign debts. Minister of Foreign Affairs Ali […]

Courtesy Hiru News The overall rate of inflation, as measured by the National Consumer Price Index (NCPI), has decreased to 1.6% in May 2024, down from 2.7% in April 2024, according to the latest data released by the Department of Census and Statistics. This decline in inflation reflects a significant change in the economic landscape […]

Courtesy The Daily Mirror Sri Lanka will be able to further strengthen its ties with Malaysia, with the Cabinet of Ministers this week giving the nod to commence the negotiations for a free trade agreement (FTA) between the two countries.  The proposal for the FTA was presented to the Cabinet by President Ranil Wickremesinghe.   The […]

Tharindu Udayanga Kamburawala Courtesy LSE Blog Sri Lanka has had a long association with the International Monetary Fund (IMF) since her independence in 1948 — in fact, the latest loan (in 2023) is its 17th IMF support package. In this post, Tharindu Udayanga Kamburawala analyses the trends and reasons behind Sri Lanka’s recurring reliance on the IMF, and […]

AUTHOR : SOUMYA BHOWMICK Courtesy Observer Research Foundation Sri Lanka’s recent economic crisis and recovery efforts present a complex narrative marked by internal challenges and external shocks. The crisis, which began in 2019, was exacerbated by ill-advised tax cuts, a poorly managed shift to organic farming, and a series of devastating events such as the 2019 Easter bombings, […]

Fibre2Fashion News Desk  INSIGHTS Indian  has committed to provide a grant of US$61.5 million for the comprehensive development of Sri Lanka’s Port of Kankesanthurai (KKS). The decision was ratified during a cabinet meeting, sanctioning acceptance of India’s financial assistance to revamp the KKS Port in Jaffna. This is as per media reports, which added initially […]

Courtesy Malay Mail Sri Lanka’s Central Bank governor P. Nandalal Weerasinghe speaks during the Central Bank of Sri Lanka Annual Report 2023 press conference in Colombo May 7, 2024. — AFP pic COLOMBO, May 7 — Sri Lanka’s tentative recovery from its worst economic crisis could be stalled by presidential elections due later this year, […]

Courtesy Adaderana Sri Lanka’s official reserve assets increased by 9.6% to USD 5.43 billion in April 2024, compared to USD 4.96 billion in March 2024, according to the Central Bank of Sri Lanka (CBSL).  However, this includes proceeds from the swap with People’s Bank of China (PBoC) equivalent to around USD 1.4 billion, which is […]

Courtesy CNA BENGALURU : Sri Lanka’s economy is expected to grow by 3 per cent in 2024 after it reduced interest rates amid easing inflation, its central bank said on Thursday, as the country navigates its escape from its worst financial crisis in decades. The island nation’s economy contracted 2.3 per cent in 2023 after […]

Courtesy Adaderana The overall rate of inflation as measured by the National Consumer Price Index (NCPI) on Year-on-Year basis has been decreased to 2.5% in March 2024, compared to 5.1% in February 2024, the Department of Census and Statistics (DCS) revealed in its latest report. Meanwhile, the contributions to the inflation rate of March 2024 from […]

Courtesy Adaderana The Asian Development Bank (ADB) says its annual flagship economic publication – the Asian Development Outlook (ADO) April 2024 – has projected Sri Lanka’s economy to record moderate growth of 1.9% in 2024 and 2.5% in 2025 following two consecutive years of contractions. According to the publication, Sri Lanka is showing signs of recovery, with […]

Courtesy Adaderana The overall rate of inflation as measured by the Colombo Consumer Price Index (CCPI) on year-on-year basis has recorded a significant decrease in the month of March 2024, according to the most recent figures published by the Department of Census and Statistics (DCS). The CCPI-based inflation was calculated as 5.9% for the month […]

By Pranjal Pandey Courtesy Eurais Review Sri Lanka’s economic crisis has worsened due to IMF deals, causing social unrest, unemployment, poverty, and food insecurity, and posing significant challenges for its people. The International Monetary Fund (IMF) announced on March 21, 2024, that it has reached a staff-level agreement with Sri Lanka regarding the next phase of […]

Courtesy Adaderana The Asian Development Bank (ADB) has launched a new country partnership strategy (CPS) for Sri Lanka covering the period 2024–2028. The strategy will focus on restoring the country’s macroeconomic stability, reviving growth, and establishing the foundation for sustainable recovery and resilience. This new partnership strategy will build on ADB’s ongoing assistance to support […]

Courtesy Bloomberg (Bloomberg) — Global investors and Sri Lanka officials expect to start negotiations aimed at restructuring $12 billion in defaulted global bonds next week, according to people familiar with the matter. A group of bondholders, known as a steering committee, will begin talks as they weigh a proposal from the government to rework the […]

Courtesy Adaderana The buying rate of the US Dollar has dropped below the Rs. 300 mark for the first time since July 05, 2023.  According to the official exchange rates announced today by the Central Bank of Sri Lanka (CBSL), the buying rate of the USD is Rs. 299.29 and the selling rate is Rs. […]

Courtesy Adaderana Tamil National Alliance (TNA) parliamentarian M.A. Sumanthiran says the opposition can only decide on whether to support the International Monetary Fund (IMF) programme after analyzing the IMF’s technical assistance reports which he says the government has now agreed to provide.  He made these remarks while speaking to reports following a meeting held at […]

උපුටා ගැන්ම ලංකා සී නිව්ස් ආණ්ඩුව පවත්වා ගැනීම සඳහා ප්‍රමාණවත් ආදායමක් නොලැබෙන බව ප‍්‍රවාහන, මහාමාර්ග හා ජනමාධ්‍ය අමාත්‍ය බන්ධුල ගුණවර්ධන මහතා සඳහන් කරයි. පසුගිය වසර පුරාම මහා භාණ්ඩාගාරයට ලැබී ඇත්තේ රුපියල් ත්‍රිලියන තුනක් පමණක් බවත් ඉන් ට‍්‍රිලියන දෙකකට වැඩි ප්‍රමාණයක් රාජ්‍ය සේවක වැටුප් ආදිය ගෙවීමට වැයවූ බවත් හෙතෙම පැවසීය. රට තුළ ගෙන ඇති ණය වලට […]

By DR. C. S. WEERARATNA Courtesy The Island A trade deficit typically occurs when a country does not produce enough goods for its citizens. When production cannot meet demand as in Sri Lanka, there is a need to import thereby widening the trade deficit.  A persistent trade deficit is detrimental to a country’s economy because […]

Courtesy Adaderana Sri Lanka’s spike in inflation is expected to be short-lived and will return to the targeted 5% in the medium term, a monetary policy report released by the central bank said on Thursday as the island nation’s economy stabilises from a crippling financial crisis. Sri Lanka’s economy is seeing glimmers of recovery, helped […]