PM requests IMF to expedite rescue package as Sri Lanka runs out of cash

Prime Minister Ranil Wickremesinghe in his capacity as the Finance Minister has requested International Monetary Fund (IMF) Managing Director Kristalina Georgieva Tuesday evening to expedite the process of staff-level agreement, which would then pave the way for the rescue package at least by September.

PM presents comprehensive reform package to emerge from worst crisis

Presenting what appears to be a comprehensive reform package, Prime Minister Ranil Wickremesinghe yesterday charted a three-phased path for the country to emerge from the current economic abyss caused by the pandemic, which was then compounded by extremely poor economic management.

Daily guidance on dollar/rupee rate has brought in greater stability to forex market: CB

The Central Bank yesterday said the daily guidance rate released on the exchange rate between the United States dollar and Sri Lankan rupee is delivering the intended results by way of bringing in greater stability to the domestic foreign exchange market, which otherwise would have delivered disastrous implications, due to the rupee’s free fall.

Printing money similar to giving high dose of sugar to diabetic

Taking a swipe at Prime Minister Ranil Wickremesinghe’s repeated comments to the effect of the government having to rely on printed money to pay for essential government bills such as payment of salaries and pensions in the ensuing months, the former Central Bank Deputy Governor, Dr. W.A. Wijewardena likened it to giving sugar to a diabetes patient, to reflect the severity of the move in aggravating the current problems in the economy.

Crisis-struck SL can’t use US $ 1.5bn China swap: Coomaraswamy

Crisis-struck Sri Lanka will not be able to access a US $ 1.5 billion credit line from China, as the latter is concerned the International Monetary Fund (IMF) could push for delays in repayments.

Shortage of imported beverages, new burning issue for tourism industry

Sri Lanka’s hard-hit tourism industry is faced with yet another hurdle in catering to its international guests, this time with the non-availability of imported liquor.

Govt. relaxes import controls to support biz

The Finance Ministry yesterday implemented two key actions with regard to importation of goods, paving the way for businesses to have access to the required raw materials, so that operations can proceed with minimal hindrance.

Govt. hikes tax rates to put fiscal house in order

The Cabinet nod was granted this week to increase taxes to 2019 levels in three stages to collect an estimated Rs.125 billion additional income during this year and over Rs.292 billion additional income starting from next year.

CB says open account suspension won’t cause huge shortages

Shrugging off concerns raised by various parties that the restrictions imposed on Open Account Payment Terms would lead to a large-scale shortage of essential food items, the Central Bank yesterday assured the public that it would ensure availability of foreign exchange through the banking system for the importation of essential goods, including food items.

CEB’s massive losses make case for sharp tariff hike

The interim results filed by the Ceylon Electricity Board (CEB) for the March quarter showed the dire straits the country’s power monopoly is in and the imminent need to raise tariffs for it to stay afloat at the minimum.

Tourism sector presents ‘Revival for Survival’ plan for quick recovery

The hard-hit tourism sector has formulated a strategy document, the ‘Revival for Survival’ plan, to help support the industry through the ongoing economic crisis and move towards a positive work trajectory at the earliest.

IMF seeks assurance of debt sustainability prior to any lending

Following the conclusion of the IMF Staff virtual mission to Sri Lanka, the multilateral lender yesterday said Sri Lanka needs to restore debt sustainability prior to any kind of lending to the crisis-stricken island nation.

Premier says he will slash expenditure in new budget

Sri Lanka’s new Prime Minister Ranil Wickremesinghe, who was also appointed as the country’s Finance Minister yesterday, said he would present an interim budget within six weeks, slashing infrastructure projects to reroute the funds into a two-year relief programme for the crisis-hit island nation.

Sri Lanka returns to fuel pricing formula partially ending subsidy regime

With State-owned Ceylon Petroleum Corporation (CPC) struggling to finance fuel imports amid steep losses, Sri Lanka has returned to a cost-reflective fuel pricing formula partially ending an uneven subsidy regime after over two years, resulting in a record increase in fuel prices

Merchandise exports set new April record despite setbacks

Despite the multiple challenges from fuel and power shortages to social unrest, Sri Lanka’s merchandise exports set a new record in April, recording the highest ever export value for the month supported by the floating of rupee exchange rate in the previous month.

CB brings back LC margin requirement to discourage non-essential imports

Central Bank to crack down on foreign currency note holders

The Central Bank will soon issue legislation declaring holding any type of foreign currency notes equivalent to the value of more than US$ 10,000, illegal.

Planters fear Ceylon Tea suffering fate of SL tourism

The Planters Association of Ceylon yesterday expressed fear in the fate of Ceylon Tea being similar to that of the tourism sector, as the relevant authorities continue to fail to acknowledge, let alone manage the hardships faced.

TUI Group cancels all flights and tours to Sri Lanka

World’s leading tour company, TUI will stop all tours to Sri Lanka due to the ongoing economic and political turmoil in the island nation.

Stocks up on hopes of political stability with new PM appointment

The Colombo bourse bounced back yesterday strongly on the back of renewed optimism amid prospects for political stability in the country with the appointment of United National Party Leader Ranil Wickremesinghe as the new Prime Minister.

Grey market crackdown alone could bring some sanity to forex market: CB

Re-channeling foreign exchange flows into the formal banking sources alone could solve the bulk of the problems in the domestic foreign exchange market liquidity as over 25 percent of foreign currency transactions take place outside the banking system, according to the Central Bank Governor.

CB says time running out; calls for political stability

The Central Bank yesterday made a fervent appeal from all elected representatives, including Executive President Gotabaya Rajapaksa, to make way to establish political stability, rule of law and civic order immediately, to ensure that people’s economic sufferings wouldn’t worsen anymore.

SL’s talks with IMF at risk amid political crisis

Sri Lanka is likely to face complications and delays pertaining to its talks with the International Monetary Fund (IMF) for a rescue package amid the resignation of Prime Minister Mahinda Rajapaksa.

SL to run blowout budget deficit for third straight year

After two years of massive budget deficits, Sri Lanka is on its way to record another blowout budget deficit in the current year, with the deficit estimated for 2022 at 10.2 percent of gross domestic product (GDP), the estimates by the Central Bank showed.

Emergency declaration hammers final nail in the coffin for tourism

Sri Lankan’s tourism sector has lost whatever the little prospects it had for recovery and revival as the government has hit the final nail in the coffin for the industry with emergency declaration.

Tourism Min. gives stern warning to SLTDA, SLAITO heads

As matters are becoming increasingly ugly between the Sri Lanka Tourism leadership and private sector stakeholder, the Tourism Ministry has sternly requested the two parties to immediately put a stop to the public mudslinging.

Sri Lanka lost about 1mn taxpayers since 2019 tax cuts: Finance Minister

Sri Lanka lost about a million taxpayers in the two years through 2021 since the government slashed taxes in late 2019 in its failed attempt to spur economic growth.

Sabry paints gloomy economic outlook for next two months

Presenting what could be the most honest account by a ruling party member of the depth of the economic crisis faced by Sri Lanka at present, Finance Minister Ali Sabry yesterday proposed a slew of policy reforms capable of correcting the course of the economy, including a new budget to be presented in Parliament, containing higher taxes.

SL likely to restore pre-2020 tax regime as govt. to put economy back on track

As Sri Lanka is now compelled to make some tough choices to put its economy back on track, both the Finance Ministry and Central Bank officials are calling for higher taxes as part of a crucial fiscal reforms package, while the talks with the International Monetary Fund (IMF) continue for a rescue package.

CB may relax forced Fx conversion rule as evidence shows opposite results

In a bid to restore normalcy in the domestic foreign exchange market and thereby enhance its liquidity, the Central Bank could relax the mandatory conversion requirement on foreign currency in place for merchandise exports and services.