Category: Economy
We will support govt in reinstating previous tax regime & IMF reforms: Eran Wickramaratne
Statement on Sri Lanka Defaulting on Foreign Debt Payments by Eran Wickramaratne M.P., Former State Minister of Finance On 12 April 2022, Sri Lanka suspended repayment on most of the government’s external foreign currency debt, including the International Sovereign Bonds (ISBs) and bilateral debt. With the end of the 30-days grace period since the ISB […]
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 […]
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Fitch Ratings has downgraded Sri Lanka’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) to ‘RD’ (restricted default) from ‘C’. Fitch typically does not assign modifiers for sovereigns with a rating of ‘CCC’, or below. KEY RATING DRIVERS Grace Period Ends: The downgrade of Sri Lanka’s LTFC IDR to ‘RD’ follows expiry of the 30-day grace period […]
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 CB maintains policy rates
The Monetary Board of the Central Bank of Sri Lanka, at its meeting held on 18 May 2022, decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank at the current levels of 13.50 per cent and 14.50 per cent, respectively. The Board is of […]
Year on year food prices increase close to 50-pct: Advocata
Advocata’s Bath Curry Indicator (BCI) , which tracks the monthly changes in the retail price of food, recorded an increase of 14% from March 2022 to April 2022. This is a year on year increase of 49% for this basket of food. This is driven primarily by prices of dhal and samba rice being the […]
It is critical that we receive funds from Japan, as they are the only option we have left: Harsha
Contrary to statements made by former Ministers who stated that Sri Lanka will receive funds from the Middle East and various other countries, ultimately, it is only Japan that we have left, speaking in Parliament Harsha de Silva said. “We hear that President Gotabaya has written to the Japanese Prime Minister requesting some money while […]
Another Grant of 300 Million Chinese Yuan from China to Sri Lanka
China has decided to provide another grant of 300 million Chinese Yuan to Sri Lanka to help in the supply of medicine, food, fuel, and other essentials, the Prime Minister’s Office said in a statement. This latest grant will bring the total amount of China’s grant aid to 500 million Chinese Yuan (approximately million).
Staff-level agreement with IMF is likely to be reached within next 2 months: CB Governor
While external debt restructuring remains a top priority for the Sri Lankan government, domestic debt in the form of Government securities and Sri Lanka Development Bonds will not be restructured, Central Bank Governor Dr. Nandalal Weerasinghe announced today (April 28, 2022). Dr. Weerasinghe made these comments while addressing a meeting of the Committee of the […]
Debt-for-nature swaps can provide debt relief, but could constitute event of default: Moody’s
In a proposal to Sri Lanka’s government, the United Nations Development Programme (UNDP) has suggested debt-for-nature swaps as part of the sovereign’s broader debt restructuring plan. Under the UNDP proposal, the debt-for-nature swap would allow a portion of the government’s large debt burden to be forgiven in exchange for the implementation of environmental policies or […]
Inflation is expected to peak at 29-pct in July; LKR to further depreciate
Inflation is expected to peak at 29% in July owing to potential price hikes in essential commodities like gas, electricity, and fuel prices, the First Capital Research said. CCPI further increased to 18.7% in March, exceeding the CBSL’s and FC Research’s desired range of 4%-6% and 5%-7% respectively. According to First Capital Research, the exchange […]