President says Sri Lanka’s debt restructuring attempt watched by many

President Ranil Wickremesinghe yesterday said the world is keenly watching how Sri Lanka will recover from the “self-inflicted” economic crisis, the worst in its post-independent history, by negotiating with its creditors for financing assurances to unlock a bailout package from the International Monetary Fund (IMF).

Economic crisis plunges pandemic’s ‘new poor’ below poverty line

While the pandemic in the last two years created a segment of people identified as ‘new poor’, who were on the brink of poverty, the economic crisis, which soon followed, tipped them down below the poverty line, sending the country’s official poverty levels at least multiple levels higher than what was prior to the pandemic.

Apparels, textiles boost August exports income

Sri Lanka recorded its highest merchandise export income so far for this year in the month of August amid increased export...

Inflation nightmare could stay through 2023 even if things turn out as planned

Sri Lankans could be in for a long drawn-out path out of the economic misery that they have dug themselves into, as the prevailing cost of living crisis could grind on for years with inflation staying higher than the pre-crisis level, even after a year from now, that also if things turn out according to the forecasters’ expectations.

IMF bailout at least 3-4 months away as assurances from bilateral creditors essential

Any fund disbursements from the International Monetary Fund (IMF) to crisis-hit Sri Lanka could be at least 3-4 months away from now....

Growing stock of decent jobs must be an important development priority for SL

One of Sri Lanka’s most important development priorities must be to grow its stock of decent jobs and ensure inclusive access to them, particularly by women and young people, the International Labour Organisation (ILO) said.

Multiple crises have worsened worrisome features in Sri Lanka’s labour market: ILO

The multiple crises in Sri Lanka have intensified long-standing worrisome features of the country’s labour market, a report by the International Labour Organisation (ILO) revealed.

SL to officially present IMF deal, debt restructuring plans to creditors tomorrow

Sri Lanka will present its programme agreed with the International Monetary Fund (IMF) to its official and private creditors tomorrow for the first time, seeking debt relief, as the US $ 81 billion crisis-hit economy seeks to turnaround its fortunes.

SL’s fuel prices still lowest among non-oil producing countries

Even after the jumbo hikes in the fuel prices a couple of months ago to bring energy prices to cover full cost and to cut losses at the Ceylon.....

Construction shrinks twice as much as economy in 2Q

While the broader economy contracted by 8.4 percent in the second quarter ended in June, the construction activities, which contributed an outsize 9.5 percent to the overall economic output, shrank by nearly twice as much as in the same period, indicating its importance to the Sri Lankan economy, specially in the post-war era.

Govt. revenue considerably up in first half amid tax increases

The government revenue in the first half of 2022 jumped the most in recent times as Value Added Tax (VAT) and a slew of other taxes were raised effective from June as part of broader fiscal sector reforms....

Sponsorship for TAAI convention to be increased to Rs.100mn

The budget to host the mega tourism delegation from India, the Travel Agents Association of India (TAAI) convention, is extended by Rs.34 million, due to the escalating cost of operation in the island nation.

GDP shrinks 8.4% in 2Q amid economic and political turmoil

Sri Lanka’s Gross Domestic Product (GDP) contracted the most in two years in the quarter ended June (2Q22), the first full quarter since the country plunged into a deep economic crisis followed by social and political upheaval, which disrupted most of the economic activities amid widespread shortages and soaring prices.

Calls growing to remove VAT exemptions for equitable tax system

As the country’s tax system is undergoing a complete overhaul to ensure that the government raises adequate revenues to ensure its fiscal deficits are kept at a sustainable level, the financial and tax experts are calling for the removal of a wide range of exemptions from the Value Added Tax (VAT), which is deemed as a distortion.

Decline in employment as firms cut staff, impose hiring freezes

Sri Lanka’s manufacturing and services sectors are already seeing widespread layoffs, non-renewal of employment contracts....

CB turns net buyer  of forex after 11 months 

In what appears to be another notable development in the space of external sector advances made as of late, the Central Bank had become a net absorber of foreign exchange after being a net seller for eleven consecutive months since the country started facing foreign exchange shortages since the back half of last year.

BoP deficit shows signs of easing as imports fall to parity with exports

Sri Lanka’s Balance of Payment (BoP), which was racing past last year’s levels until recently, is slowing down after the Central Bank....

ADB to disburse US $ 203mn emergency loan to support SL’s poor and vulnerable

Sri Lanka will receive an emergency assistance loan amounting to US $ 203 million from the Asian Development Bank (ADB) to ensure the poor and vulnerable, especially women and children, have access to food and have their livelihoods protected.

Govt. urged to steer clear of haircut on rupee debt

As Sri Lanka is in the midst of securing fund disbursement from the International Monetary Fund (IMF) to bail out the crisis-struck economy, all measures must be taken to avoid a haircut, particularly on the country’s domestic debt, so that long-lasting negative impacts on the economy can be evaded.

US backs Sri Lanka’s debt restructuring effort

The United States will support Sri Lanka’s debt restructuring effort by extending financing assurances in consistent with the Paris Club principles, President Ranil Wickremesinghe’s media office said.

July trade gap narrows sharply as imports dip for fifth straight month

After recording a trade surplus in two decades in June, the trade deficit in July narrowed significantly year-on-year (YoY) as imports contracted ....

Govt. installs new system to identify those who deserve welfare benefits

The government has deployed a new welfare benefit information system from next year onwards to provide better targeted social welfare benefits by way of direct cash transfers to the vulnerable groups in society.

Fitch warns political instability could derail IMF deal progress

Although Sri Lanka last week clinched the much awaited staff-level agreement with the International Monetary Fund (IMF) in its first step towards emerging out of the current economic abyss, the brewing....

August tourist arrivals dip 20% from July

The tourist arrivals for the month of August witnessed a 20 percent dip when compared with the previous month, with the numbers totalling to 37,760.

IMF tells Sri Lanka to work “expeditiously” to gain debt relief from creditors

The International Monetary Fund (IMF) yesterday said Sri Lanka should move forward “expeditiously” to secure debt relief from its creditors to ensure debt sustainability as disbursement of any IMF financing is contingent upon that and the reforms carried out by the authorities to restore macroeconomic stability.

CB Governor gives thumbs up for RW’s interim budget

Central Bank Governor Dr. Nandalal Weerasinghe expressed confidence in the overall macro programme and structural reforms on the national economy getting on track going forward, as the interim budget presented on Tuesday (30) is the basis of the foundation of those efforts.

Interim budget sets tone for SL’s reform-heavy path ahead

President Ranil Wickremesinghe in his capacity as country’s Finance Minister yesterday presented an interim budget for the remainder...

Government announces road map to save SriLankan Airlines from crashing

With the aim to rescue SriLankan Airlines (SLA) from a looming collapse due to its heavy debt stock, the government is planning to sell up to a 49 percent stake of two profitable units of the airline, with management transfers, in order to restructure the national carrier with a possible local or foreign partner.

IMF rescue package could take six months after staff-level agreement

After reaching a staff-level agreement, the full approval for the envisaged International Monetary Fund (IMF) Extended Fund Facility (EFF) arrangement could take about six months considering challenges in the negotiations process with the country’s external creditors, particularly China, according to experts.

Crisis for SL children cautionary tale for South Asia: UNICEF

The “devastating” crisis for children in Sri Lanka is a cautionary tale for South Asia, said visiting UNICEF Regional Director for the SA region, urging for urgent action to be taken to help address the grim situation.