Author: Gayan Chandrasekara
IMF to Return to Sri Lanka for Crucial Third Review Soon
In a recent press briefing, the International Monetary Fund (IMF) announced that a mission will soon return to Sri Lanka to continue negotiations for the third review of the IMF-supported program. This follows a series of discussions held in Washington, where key topics included taxation and the reduction of the tax burden on Sri Lankans. […]
Sri Lanka Uses Tea Exports to Payoff USD 55mn of USD 251mn Iran Fuel Debt – Tea Board
Under the Memorandum of Understanding between Iran and Sri Lanka, Sri Lanka commenced the repayment of its USD 250.9 million fuel debt to Iran through tea exports. “As per the agreement, Sri Lanka aims to settle this debt through tea exports. To date, Sri Lanka has repaid USD 55 million of this debt,” Sri Lanka […]
Sri Lanka’s Central Bank Governor Discusses Cryptocurrency Regulation Amidst Calls for Relaxation
In a press conference held today, Sri Lanka’s Central Bank Governor, Nandalal Weerasinghe, reiterated his concerns over the use of cryptocurrencies, which are currently not accepted in the country. “Cryptocurrency has been recognised in some markets as an asset class, but this asset class is highly volatile and risky. So, without proper regulation and supervision, […]
Sri Lanka’s Mobile Network Performance Lags Behind in South Asia: Analysis
In a recent analysis by Opensignal, which examined the mobile network experiences of smartphone users across the six most populated countries in South Asia, Sri Lanka’s performance was found to be lacking compared to its regional counterparts. The study, which included Afghanistan, Bangladesh, India, Nepal, Pakistan, and Sri Lanka, revealed significant disparities across the region. […]
VAT to be increased to 18-pct from January; coverage will be expanded to meet targets agreed with IMF
The current Value Added Tax (VAT) rate is to be increased to 18% with effect from 01-01-2024, and to impose the tax on certain goods and services to which the Value Added Tax does not apply. According to the Cabinet of Ministers, this will be carried out to achieve the tax revenue and primary balance […]
IMF & World Bank promote narrow means-tested programs with high error rates: Human Rights Watch
The IMF and World Bank recognize that people need support, but then they promote narrow means-tested programs that—both by design and due to chronically high error rates—exclude many people who are struggling, says Sarah Saadoun, senior economic justice researcher and advocate at Human Rights Watch. Discussions at the International Monetary Fund (IMF) and World Bank […]
Rs 12Tn loss to EPF is a misrepresentation of opportunity loss: CB Governor
Sri Lanka’s Central Bank chief on Thursday disputed the claim that the Employees’ Provident Fund (EPF) would lose a staggering 12 trillion rupees (USD39 billion) by 2038. The EPF would suffer a loss of Rs 12 trillion, Opposition Leader Sajith Premadasa told Parliament yesterday.He said that an independent think tank had assessed that even based […]
IMF asks Sri Lanka to resolve uncertainty surrounding local debt restructuring
The International Monetary Fund is requesting Sri Lankan authorities to resolve the uncertainty surrounding the domestic debt restructuring and control the interest rates. “We have taken note that this uncertainty has elevated interest rates in the country,” Peter Breuer, Senior Mission Chief for Sri Lanka told reporters in Colombo. “So, we are encouraging the authorities […]
Creditor committee to ensure comparable treatment; IMF expects negotiations to end by 1st program review
IMF Deputy Managing Director says that it is encouraging to see official creditors organizing themselves around a coordinated platform which helps ensure the comparability of treatment among creditors. Speaking at the Creditors’ Meeting of Sri Lanka’s debt restructuring negotiation process Kenji Okamura said that expeditious resolution is needed for Sri Lanka to emerge as quickly […]
‘ Meeting launched; Japan, India & France agree on swift debt restructuring negotiation for SL
Japan, India, and France in the margins of the Spring Meetings on Thursday formally launched the Creditors’ Meeting on Sri Lanka’s debt restructuring negotiation process. The three creditor countries said they have been closely working toward a coordinated and swift debt restructuring for Sri Lanka which will provide a comparable treatment for every creditor. Japanese […]
Japan, India & France to announce the launch of debt restructuring negotiation process on Sri Lanka
Japan, India, and France will hold a press briefing on Thursday in the margins of the Spring Meetings to announce the launch of the debt restructuring negotiation process on Sri Lanka, the Japanese Ministry of Finance said in a statement. Japanese Minister of Finance Shunichi Suzuki, Vice Minister of Finance Masato Kanda, Indian Minister of […]
People’s Bank of China to consider renewing swap arrangement with CBSL for another 3 years: report
People’s Bank of China (PBoC) has indicated that it will consider renewing its swap arrangement with the CBSL in 2024 for another three years if there is no significant situation change, the IMF Staff Report highlighted. However, the PBOC swap ($1.4bn in 2022) will become usable once Gross international reserves (GIR) rise above 3 months […]