Category: Economy
Sri Lanka and World Bank sign USD150 mn deal to strengthen financial sector resilience
The Government of Sri Lanka (GOSL) and the World Bank signed an agreement for $150 million in financing for Sri Lanka to strengthen the resilience of the financial sector through the Financial Sector Safety Net Strengthening Project (FSSNP). In parallel, the project agreement between the World Bank and the Central Bank of Sri Lanka (CBSL) […]
‘s economic sovereignty
Sri Lanka, facing internal and external challenges, grapples with the aftermath of its external debt crisis, exacerbating existing economic issues. The Easter attacks, COVID-19 pandemic, global conflicts, and economic mismanagement have pushed Sri Lanka back to seeking IMF assistance. Despite government efforts, widespread poverty persists, exacerbated by low-pay and unemployment. The civil society warnings about […]
Sri Lanka’s total exports reached USD 14.94 Bn in 2023
Sri Lanka’s total exports reached US$ 14.94 Bn in 2023 including merchandise exports (US$ 11.85Bn) and estimated service exports (US$ 3.08 Bn). It is only a 0.39 % decline when compared to the value recorded in the previous year ( US$ 14.99 Bn). The estimated increase in service exports is around 63%. Sri Lanka’s Export […]
Primary & Budget Balances move in opposite directions as interest payments increase
The Fiscal Management Report 2024 published by the Ministry of Finance, shows that the Primary Balance improved from LKR -317 Bn in the 3rd quarter of 2022 to a positive LKR 124 Bn in the 3rd quarter of 2023, as reported by publicfinance.lk. The Budget Deficit, however, worsened from LKR -1,244 to LKR -1,614, this […]
IMF Staff concludes visit to Sri Lanka; highlights introduction of a progressive property tax
An International Monetary Fund (IMF) mission team led by Peter Breuer visited Sri Lanka from January 11 to 19, 2024 to discuss recent macroeconomic developments and progress in implementing economic and financial policies under the EFF arrangement. At the end of the mission, he issued the following statement: “The economic reform program implemented by the […]
Japanese Finance Minister Commends Economic Advancements in Sri Lanka
Japan’s Finance Minister, Suzuki Shunichi, arrived in Sri Lanka on a two-day official visit (11-12) aimed at deepening economic relations with the Sri Lankan Government. This visit is particularly significant amidst the economic challenges faced by Sri Lanka, prompting the implementation of comprehensive reform measures focusing on macro stability and debt sustainability. The Japanese Finance […]
Next Steps in Sri Lanka’s Economic Program Outlined by IMF
The International Monetary Fund (IMF) has recently approved the first review of Sri Lanka’s economic program, marking a significant milestone in the country’s economic recovery. However, the focus now shifts to the next steps in the program. “Program performance has been satisfactory, as signaled by the completion of the review,” says Julie Kozack, Director of […]
SL economy to record positive growth rates and gain further momentum over medium term: CB Governor
Sri Lanka has entered a path of recovery following the worst economic crisis in its postindependence history while the policy measures that were taken by the Government and the Central Bank during 2022 and 2023 helped restore macroeconomic stability, the Governor of the Central Bank said. Governor P. Nandalal Weerasinghe announcing the Central Bank’s annual […]
Uncertain Economic Outlook for Sri Lanka Amid Debt Restructuring & Structural Reforms: World Bank
The economic future of Sri Lanka remains uncertain, as the country navigates debt restructuring negotiations with private creditors and implements structural reforms to boost growth potential, according to the World Bank’s latest Global Economic Prospects report. The report highlighted that the economy contracted by an estimated 3.8 percent in 2023, and credit to the private […]
Sri Lanka and DFC Discuss Deepening Collaboration for Economic Growth
Following a significant investment in the Colombo Port expansion, Sri Lanka seeks to broaden its partnership with the U.S. International Development Finance Corporation (DFC). Ambassador Mahinda Samarasinghe met with DFC CEO Scott Nathan on December 8th to explore avenues for deeper collaboration aimed at boosting Sri Lanka’s economic growth with potential areas of collaboration, including […]
Sri Lankan Small Businesses Seek Breathing Room: Parate Law Suspension Talks Underway
A crucial meeting is set to take place tomorrow (21) at the Jasmine Hall, Bandaranaike Conference Hall, Colombo, between the Minister of Justice, Wijeyadasa Rajapakshe, Plantation Industries Minister Dr. Ramesh Pathirana, and Sri Lankan small businessmen. The discussion will focus on the temporary suspension of the seizure of property under Parate executions. The Sri Lankan […]
World Bank Releases Additional USD250 Million for Sri Lanka to Sustain Economic Reforms
The World Bank released the second tranche of the US$500 million Sri Lanka Resilience, Stability and Economic Turnaround (RESET) Development Policy Operation (DPO), considering the continued satisfactory progress made by government with the reform program. The RESET DPO, which provides budget support to the government was approved on June 28, 2023. This is the first in […]