Vijay Prasad From 9 to 15 October, the International Monetary Fund and the World Bank held their annual joint meeting in Marrakech (Morocco). The last time that these two Bretton Woods institutions met on African soil was in 1973, when the IMF-World Bank meeting was held in Nairobi (Kenya). Kenya’s then President Jomo Kenyatta (1897–1978) […]

Debapriya Bhattacharya Bangladesh needs to learn from Sri Lanka’s experience about how to face an unprecedented economic crisis and recovery strategies to avoid similar circumstances and improve the well-being of citizens, said Debapriya Bhattacharya, a distinguished fellow at the Centre for Policy Dialogue (CPD). Sri Lanka’s economy was crushed last year under its worst financial […]

By Dilmini Hasintha Abeyrathne Courtesy The Diplomat What three different countries can tell us about the global debt problem – and China’s role in both debt distress and debt relief. The issue of global debt distress is a matter of great concern, not just for the affected developing nations but also for developed countries and international […]

Courtesy Nikkei Asia COLOMBO (Reuters) — Sri Lanka’s cabinet approved a hike in Value Added Tax (VAT) up to 18% from the current 15% with effect from Jan. 1, 2024, said Transport Minister Bandula Gunawardana. State tax revenue of the first nine months of 2023 rose 51% as compared to the same period last year but tax collection […]

Courtesy Adaderana Sri Lanka is set to award a multi-billion dollar oil refinery project to a Chinese state-owned company after a rival bidder pulled out, the energy minister said Tuesday. Kanchana Wijesekera said the government would shortly enter into an investment agreement with Sinopec to build the refinery next to the Chinese-run port at the […]

Reuters COLOMBO, Oct 23 (Reuters) – Sri Lanka’s consumer price inflation rate eased to 0.8% year-on-year in September from 2.1% in August, the statistics department said on Monday. The National Consumer Price Index (LKNCPI=ECI) captures broader retail price inflation and is released with a lag of 21 days every month. Food prices fell 5.2% in September after […]

Courtesy CNA NEW DELHI :The International Monetary Fund (IMF) is looking for a strong budget and narrower deficit from Sri Lanka as it seeks funding to bridge the gap between government revenue and expenditure, the IMF mission chief for the country said on Friday. Sri Lanka plunged into its worst financial crisis in seven decades […]

Courtesy Adaderana Sri Lanka’s Minister of Foreign Affairs Ali Sabry has emphasised the need for Sri Lanka to make the ‘right calls’ concerning important investment decisions, one year after Sri Lanka saw its worst, most unprecedented crisis. On the lessons learned during the economic crisis and political turmoil the nation faced over an year ago, […]

Courtesy Adaderana Key players in the development of Colombo Port City have finalized a groundbreaking USD 1.565 billion deal in Beijing, advancing phase two development of the Colombo Port City, encompassing the Marina Project, Marina Hotel, and Colombo International Financial Centre (CIFC) Project. Accordingly, the corporation framework agreement was signed by Port City Economic Commission, […]

Courtesy Adaderana The Chinese Finance Minister, Mr. Liu Kun, has reaffirmed China’s commitment to extend comprehensive support for the implementation of a medium-term and long-term program that is mutually beneficial to both parties and aimed at optimizing Sri Lanka’s debt. The Chinese Finance Minister conveyed this commitment during bilateral discussions held this morning (19) in […]

By Global Times Chinese Foreign Ministry spokesperson Wang Wenbin Photo: mfa.gov.cChina will continue to support its financial institutions in actively negotiating with relevant parties, and is willing to work together with relevant countries and international organizations to assist Sri Lanka in addressing its difficulties, easing its debt burden and achieving sustainable development, Chinese Foreign Ministry […]

By Dr. Palitha Kohona Courtesy Ceylon Today China has been a major investor in Sri Lanka. In fact, after the brutal conflict with the terrorist LTTE was successfully ended in 2009, China became the main source of foreign direct investments (FDIs) in the country at a time when more traditional sources of investments could not […]

e-Con e-News ‘Before you study the economics, study the economists!’ e-Con e-News 08-14 October 2023 ‘War is robbery, commerce is generally cheating’ – Benjamin Franklin (who described people as ‘tool-making animals’) The IMF & World Bank’s ‘tough love’ and sweet hemlock about eliminating ‘corruption’ & ‘transparency’ mainly aims to sabotage a national movement focused on […]

Krithiga Narayanan courtesy DW Asia Sri Lanka’s economic reforms are slowly taking hold, but as hunger and poverty continue to rise, observers say the country still has a long way to go before people see improvements to their lives. For several years, Sri Lanka has been facing challenges on multiple fronts, exacerbated by an economic […]

Courtesy CNA NEW YORK : A group of private holders of Sri Lanka’s eurobonds proposed in a debt overhaul plan to the government the issuance of 10 bonds linked with the country’s macroeconomic health that will mature between 2027 and 2036. Holders choosing the macro-linked bonds would take a haircut of 20 per cent on […]

Courtesy The Daily News Key milestone for PROMPT economic recovery The government yesterday said that it has reached an agreement on the key principles and indicative terms of a debt treatment with the Export-Import Bank of China (Exim Bank). The Finance Ministry said that the agreement in principle covers around US$ 4.2 Bn of outstanding […]

Courtesy CNA LONDON : Sri Lanka’s private creditors have sent a proposal on how to restructure $12 billion of overseas debt, including a new type of bond designed to ease repayments in case of future economic pressure, said two sources with direct knowledge of the matter. The country of 22 million people tipped into its […]

Prime Minister’s Media Division The members of Board of Governors of Asian Development Bank held detailed discussion with Prime Minister Dinesh Gunawardena on Sri Lanka’s financial requirements for projects for the next 5 years at the Temple Trees in Colombo on October 10. Expressing satisfaction over Sri Lanka’s quick stabilization of the economy after the […]

Courtesy Adaderana China has assured that it remains ready to work together with all relevant international financial institutions to jointly play a positive role in helping Sri Lanka ease its debt burden and achieve sustainable development. Speaking during his regular press briefing on Tuesday (10), China’s Foreign Ministry Spokesman Wang Wenbin explained that as Sri […]

Courtesy Adaderana (Bloomberg) – China said one of its financial institutions has reached a preliminary agreement with Sri Lanka on resolving China-related debt, a potentially major step toward resolving the South Asian nation’s fiscal woes. The deal involving Export-Import Bank of China was reached late last month, Chinese Foreign Ministry spokesman Wang Wenbin said Tuesday at […]

Dimuthu Attanayake  Courtesy The South China Morning Post Rajitha Wickramasinghe, 33, was living a comfortable life as a product development and innovation engineer, but as Sri Lanka reels from bankruptcy, he is among a growing number of professionals looking to emigrate. Disposable incomes of professionals like Wickramasinghe shrivelled as Sri Lanka was thrust into a […]

Courtesy CNA COLOMBO :Sri Lanka’s central bank resumed interest rate cuts on Thursday to boost growth as the government seeks to lift revenue and repair its balance sheets in a bid to sustain financial support from the International Monetary Fund. The Central Bank of Sri Lanka (CBSL) lowered the standing deposit facility rate and the […]

Courtesy www.bssnews.net COLOMBO, Oct 5, 2023 (BSS/AFP) – Crisis-hit Sri Lanka cut interest rates by100 basis points Thursday as the second instalment of an IMF bailout was heldup after the government missed several loan conditions. The Central Bank of Sri Lanka (CBSL) said it reduced the benchmark lendingrate to 11 percent as year-on-year inflation fell […]

Courtesy Adaderana The World Bank revised up its forecasts for Sri Lanka’s economy on Tuesday, noting the crisis-hit nation had made strides in reducing inflation and had benefited from tourism revenue as well as an appreciation in its currency. The bank now expects the economy to expand 1.7% in 2024, up from an earlier forecast […]

Courtesy The Daily News The Government is confident that it will be able to reach a staff level agreement this week on the release of the second tranche of the Extended Fund Facility (EFF) to be provided by the International Monetary Fund (IMF), State Minister of Finance Shehan Semasinghe said. An IMF mission team led […]

Courtesy Investing.com Sri Lanka’s agreement with the International Monetary Fund (IMF) for the next tranche of funds under a $3 billion lending program has been stalled, threatening to slow down the island nation’s recovery from its worst economic crisis in history. The IMF team concluded a two-week visit to Sri Lanka on Wednesday without securing […]

Courtesy Aljazeera Global lender says it did not reach a staff-level agreement with Sri Lanka in its first review under a $2.9bn bailout package. The International Monetary Fund did not reach a staff-level agreement with Sri Lanka in its first review under a $2.9bn bailout package, due to a potential shortfall in government revenue generation, says […]

Bloomberg News COLOMBO, Sept 27 —Some members on the committee of Sri Lanka’s official creditors are pushing to reach a deal to restructure the nation’s debt without the participation of China, Bloomberg News reported today citing people familiar with the matter. The members want the group of major creditors, including the US, Japan and India, […]

Courtesy NekkeiAsia Fund says crisis-hit economy needs tax reforms to boost coffers A vendor waits for customers at a marketplace in Colombo on Sept. 27. “The people of Sri Lanka have shown remarkable resilience and the authorities have made significant progress on important reforms,” the IMF said in a statement.   © AP MUNZA MUSHTAQ, Contributing writerSeptember […]

Courtesy The Daily Mirror The International Monetary Fund (IMF) mission team concluding its visit to Sri Lanka said that despite early signs of stabilization, full economic recovery is not yet assured. The team led by Peter Breuer and Ms. Katsiaryna Svirydzenka said Sri Lanka has made commendable progress in implementing difficult but much-needed reforms. The […]