Category: Economy
Local Consortium of SL Commits to Supporting Govt’s International Sovereign Bond Restructuring
The Local Consortium of Sri Lanka (the “LCSL”), comprised of domestic commercial banks and financial institutions, commits its full support for the Exchange Offer and Consent Solicitation launched today by the Government of Sri Lanka (the “Government”) to restructure the US$12.55bn in outstanding International Sovereign Bonds (“ISBs”) including terms tailored for local holders (the “Local […]
Ceylon Chamber of Commerce Welcomes Staff-Level Agreement for Third Review of IMF Program
The Ceylon Chamber of Commerce welcomes the announcement of a staff-level agreement for the third review under the International Monetary Fund (IMF) Extended Fund Facility program for Sri Lanka. This agreement underscores the progress the country has made in implementing structural reforms and achieving fiscal sustainability during this critical period of economic recovery. While acknowledging […]
IMF Reaches Staff-Level Agreement on the Third Review under SL’s Extended Fund Facility Arrangement
An International Monetary Fund (MF) team led by Peter Breuer, Senior Mission Chief for Sri Lanka, visited Colombo from November 17 to 23, 2024. After constructive discussions in Colombo, Mr. Breuer and Deputy Mission Chief Ms. Katsiaryna Svirydzenka issued the following statement: “We are pleased to announce that the IMF team reached staff-level agreement with the […]
IMF Staff-Level Agreement on Third Review of EFF Expected This Week: President Says Parliament
The President announced in Parliament that a staff-level agreement (SLA) with the International Monetary Fund (IMF) on the third review of Sri Lanka’s Extended Fund Facility (EFF) is anticipated this week. This announcement was made during the inaugural session in Parliament after the general election, highlighting the critical role of this agreement in securing continued […]
ADB approves USD200 mn policy-based loan to help Sri Lanka strengthen its financial sector
The Asian Development Bank (ADB) today approved a $200 million policy-based loan to further help the Government of Sri Lanka strengthen its financial sector. This second subprogram of ADB’s Financial Sector Stability and Reforms Program builds on the stabilization and crisis management measures put in place under the first subprogram approved in 2023. “Sri Lanka […]
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. […]
Financial Intelligence Unit enters into a MoU with National Secretariat for Non-Governmental Organizations
The Financial Intelligence Unit (FIU) of Sri Lanka entered into a Memorandum of Understanding (MOU) with the National Secretariat for Non-Governmental Organizations on November 04, 2024 at the Central Bank of Sri Lanka (CBSL) to exchange information on investigations and prosecutions of Money Laundering (ML), Terrorist Financing (TF) and related crimes and of any persons […]
Opinion: CB defends liquidity injections amid “Money Printing” controversy
by Dhananath Fernando A fresh controversy has erupted following reports that Sri Lanka’s Central Bank (CBSL) injected nearly 100 billion rupees into the banking system by October 25. Given that money printing was the major cause of the country’s financial crisis, this news has sparked considerable attention. CBSL has defended its actions, arguing that these […]
EDB Establishes “Trade Facilitation Task Force” to Enhance Export Efficiency
As a strategic move to develop a mechanism for addressing challenges in the export value chain, the Export Development Board (EDB) has established a Trade Facilitation Task Force. The first meeting was held on October 29 at the Export Development Board. Attendees included Mrs. Champika D. Dharmasena, Director General of the Export Development Board; Mrs. […]
Increases to VAT rates & removal of exemptions hurt poorest; PAYE & PIT highly progressive: IPS Economist
The Institute of Policy Studies of Sri Lanka (IPS) recently hosted a knowledge-sharing and networking event to mark the release of its annual flagship report, Sri Lanka: State of the Economy 2024. This year’s report, themed “Economic Scars of Multiple Crises: From Data to Policy,” presents a comprehensive analysis of Sri Lanka’s ongoing economic recovery, […]
Political Risks to Sri Lanka’s Debt Restructuring Agreement Recede: Fitch Ratings
The Sri Lankan authorities’ confirmation that they endorse the targets set under the country’s IMF programme, and intend to implement debt restructuring based on the terms agreed with international sovereign bondholders in September, reduces risks to the debt treatment process associated with the outcome of the presidential election on 21 September, says Fitch Ratings. Full […]
World Bank Signs Additional USD 200 Mn to Support Sri Lanka’s Economic Reforms
The World Bank and the Government of Sri Lanka today signed the Second Resilience, Stability, and Economic Turnaround (RESET) Development Policy Operation (DPO) for $200 million. This is the second operation in a two-part series that began in 2022. The first operation, totaling $500 million, was disbursed in June and December 2023. The Second RESET DPO aims to support […]