Author: Gayan Chandrasekara
We have almost completed targets to reach staff level agreement: CBSL Governor
Sri Lanka’s Central Bank Governor says that they have almost completed all the required targets to reach a staff-level agreement with the IMF mission due in Sri Lanka at the end of this month. “IMF mission is planning to come here towards the end of the month with an intention to reach the staff level […]
‘s stock exchange: Few people control it & few people rig it, says President
President Ranil Wickremesinghe says that he has questions about putting shares of the state-owned enterprises onto the current Stock Exchange. “What is the platform for restructuring? Many of you say, send it to the Stock Exchange.I have my questions about it. The Stock Exchange is today identified not with the London Stock Exchange,” Wickremesinghe pointed […]
Sri Lankan merchandise exports grew to an all-time record for the month of April
Earnings from the merchandise exports increased by 11.87% y-o-y to US$ 915.3 Mn in April 2022, the highest monthly value recorded for the month of April. This was mainly due to the increase in earnings from the export of Apparel & Textiles, Coconut based products, and Rubber-based products. Further, a sizable increase was recorded in […]
Transparency International presents 15 points on essential anti-corruption reforms to revive Sri Lanka
2022 has so far been a tumultuous year for Sri Lanka. With the country teetering dangerously close to defaulting, economists have noted that the situation will only get worse before it can get better. Transparency International Sri Lanka maintains its stance that the prevailing crisis has been caused by decades of misuse and mismanagement of public […]
‘s current rating associated with 35-pct to 65-pct recovery rate: Moody’s
On 18 May, Sri Lanka (Ca stable) defaulted on its international bonds for the first time, after failing to make its coupon payments that were due on 18 April within the 30-day grace period. The government announced that it would suspend external debt-service payments on 12 April and pursue comprehensive external public debt restructuring in […]
CBSL issues order imposing LC deposit margin requirement for over 700 non-essential items
Sri Lanka’s Central Bank has directed commercial banks with immediate effect that Letters of Credit (LCs) should not be opened for the importation of non-essential goods (see below) unless such LCs are covered by a non-interest-bearing cash margin deposit requirement of 100 percent maintained at the time of opening the LC. Banks have further directed […]
Central Bank warns Sri Lankans holding over 10,000 dollars as notes
Sri Lanka’s Central Bank is planning to illegalize the holding of dollar notes by its citizens for longer periods, Governor Nandalal Weerasinghe said. Accordingly, Sri Lankans will only be allowed up to 10,000 dollars as notes to keep with them without depositing in a bank or encashing at the official exchange rate. “What we are […]
Sri Lanka suspends normal debt servicing; announces interim policy on servicing external debt
Sri Lanka’s government has suspended the normal debt servicing of all affected debts, for an interim period pending an orderly and consensual restructuring of those obligations in a manner consistent with an economic adjustment program supported by the IMF. Announcing an interim policy regarding the servicing of Sri Lanka’s external public debt, the Ministry of […]
Technical negotiation with IMF started; RFPs to be called to appoint advisors for debt restructuring
Sri Lanka’s Central Bank has already started technical negotiations with the International Monetary Fund for an IMF program and appointing financial and legal advisors for debt restructuring will be expedited, new Central Bank Governor Nandalal Weerasinghe said. “I want to make it very clear that I am going to exercise the powers vested with the […]
Sri Lanka’s debt is unsustainable with very high rollover risk: IMF Debt Sustainability Assessment
Based on IMF staff analysis, fiscal consolidation necessary to bring debt down to safe levels would require excessive adjustment over the coming years, pointing to a clear solvency problem. Releasing the Country Report No. 2022/091: Sri Lanka: 2021 Article IV Consultation, the IMF staff said that a more ambitious adjustment, required to significantly reduce debt, […]
Sri Lanka will settle USD 1bn ISB maturing in July; no debt restructuring needed, says CBSL
The Government and the CBSL have already taken necessary measures to secure alternative forex inflows via a number of bilateral and multilateral funding arrangements to meet the upcoming debt obligations, including the US dollars 1 billion ISB maturing in July 2022, the Central Bank said. Releasing a statement, the bank said that with the realisation […]
Sri Lanka official reserves down to USD 2.36bn in January; Gold reserves down further
Sri Lanka’s official reserve assets were 2.4 billion US dollars (USD 2,361mn) by the end of January, down from 3.1 billion US dollars in December last year, the latest Central Bank data showed. By the end of January, the foreign currency reserves were 2,078 million dollars while the reserve position in the IMF was 67 […]