Sri Lanka one step closer to securing IMF funding with Paris Club’s nod

After India, Paris Club creditors have provided financing assurances, placing Sri Lanka a step closer to secure approval from the Executive....

China confirms attendance at IMF’s first-ever creditor-debtor roundtable in India

The nations that are in debt with the People’s Republic of China will have the opportunity to negotiate firsthand the debt restructuring agenda, as the world’s second largest economy has confirmed its attendance at the first-ever creditor-debtor roundtable organised by the International Monetary Fund (IMF).

CB begins banks’ asset quality review to identify stresses in the system

The Central Bank has kicked off an asset quality review of the country’s banking sector to identify possible stresses in different pockets of banks’ balance sheets as they provided enormously on possible bad loans and other financial asset losses in 2022 with the final stretch of moratoria expiring early this year.

Prez. confident in SL rising up and building back a stronger economy

As Sri Lanka celebrates its 75th year of independence from British rule today, while grappling with the worst economic crisis faced in history, President Ranil Wickremesinghe expresses confidence in the country rising up from the current turmoil and coming back stronger.

Paris Club to “soon” provide financing assurances to help SL unlock IMF funding

The Paris Club of creditor nations is ready to provide financing assurances to Sri Lanka, a key step needed to unlock a US$2.9 billion bailout by the International Monetary Fund (IMF), Reuters reported yesterday quoting two unnamed sources.

Tourist arrivals cross 100,000 mark in January

The tourist arrivals to Sri Lanka crossed the 100,000 mark in January for the first time since March 2022.

Trade deficit hits 12-year low in 2022 amid sharp decline in imports

Sri Lanka’s trade deficit hit a 12-year low in 2022 as a result of resilient export performance, particularly industrial exports, and the sharp decline....

CB insists on staying on reform path regardless of election outcome

Central Bank Governor Dr. Nandalal Weerasinghe said regardless of the future elections, he wants to see a continuation of the economic reform path the country has embarked on, as it is the only way to come out of the current crisis.

Economy likely to shrink by 3.5%-4% this year: President

As Sri Lanka is yet to tackle issues from the domestic and international fronts that are impacting its economy, President Ranil Wickremesinghe....

Ceylon Chamber expects economy to fare better this year though consumption expected to contract

Sri Lanka’s economy will fare better this year than it did in the previous year, where the economy is estimated to have contracted by about 9 percent but consumption is expected to contract till about the second half of the year, the Ceylon Chamber of Commerce (CCC) said in its Sri Lanka Economic Outlook 2023.

CB employees stage protest against govt.’s tax policy

Central Bank employees yesterday staged a protest supporting the ‘Black Week’ already announced against the increased income tax rates, which came into effect from this month, calling such steeply high tax rates are unbearable and unjust. Last week, Central Bank’s Executive Officers’ Union wrote to the Treasury Secretary saying that the new tax regime is extremely burdensome and done with no proper analysis.

CB stands pat as it sees more room for yields, market rates to ease

The Central Bank yesterday left its key policy rates at their elevated levels for the fourth consecutive month, as it awaited the recently implemented measures to put further downward pressure on yields and short-term rates, while inflation expectations also remain anchored.

CB chief signals end to debt moratoria

As businesses across diverse sectors are still hoping for some relief by way of debt moratoria, the Central Bank yesterday indicated that it does not encourage the continuity of such packages as that could take a heavy toll on the banking sector.

Tourist arrivals in first three weeks of January top 70,000

The tourist arrivals to Sri Lanka in the first three weeks of January have topped 70,000, indicating the island nation’s tourism industry is firmly on the recovery path.

Exim Bank letter renews SL’s hope for China’s backing to unlock IMF funding

Sri Lanka is hopeful of China extending its financing assurances to unlock the bailout package from the International Monetary Fund (IMF), the Ministry of Finance said, as the creditor has taken the first step in affirming its commitment to the island nation’s attempt to restructure its debt.

Rift in PUCSL likely to pave way for proposed electricity tariff increase

Public Utilities Commission of Sri Lanka (PUCSL) Chairman Janaka Ratnayake yesterday alleged that the country’s political authorities have influenced three commission members to revise the earlier unanimous decision to reject the interim and retrospective electricity tariff hike proposed by the Cabinet of Ministers.

Services liberalisation bogged down by lack of data, stakeholder engagement

Due to insufficient data and lack of industry engagement, Sri Lanka’s free trade agreement (FTA) negotiators are faced with the daunting task of service sector liberalisation as the country prepares to resume negotiations for proposed comprehensive FTAs with India and China over the next two months.

Opposition to higher taxes comes from within Central Bank

The Central Bank Executive Officers’ Union expressed its strong objection against the higher personal income taxes, which came into effect from the beginning of this month and condemned the manner in which they were implemented without a proper analysis.

Delay in public sector salaries as govt. moves away from money printing

For the first time in the country’s history,the government yesterday announced that salaries to public sector employees may get delayed....

Potential issues with CB’s move to limit banks’ access to standing facility windows highlighted

As the limits on accessing the Central Bank’s standing facility windows by the licensed commercial banks came into effect from this week,

Private sector credit crash continues to sixth straight month as economy teeters

Sri Lanka’s private credit fell again in November for the sixth consecutive month, reflecting the deepening contraction seen....

Excise Dept. approves production of new alcoholic beverages locally for export markets

With the aim to boost foreign exchange earnings from locally produced alcoholic beverages, the Excise Department has granted approval to produce cider and milk punch, with local ingredients, for export markets.

Upbeat CSE prepares for potential SOE listings, to offer new products

Banking on renewed foreign investor sentiment and expected recovery in the economy in the second half of the year, the Colombo Stock Exchange (CSE) is set to introduce a suite of new products to the market this year, while making its platform available for potential sale of shares of selected state-owned enterprises (SOEs) if the government decided to do so.

StanChart says IMF deal only likely in 2Q amid protracted talks with official creditors

The Executive Board sign-off for the International Monetary Fund (IMF)-sponsored bailout package for Sri Lanka may not happen until the second quarter of this year, as the country is likely to see delays in obtaining financing assurances from its bilateral creditors to restructure debt, according to Standard Chartered (StanChart) Global Research.

Govt. to cut public expenditure by 5% as State coffers run dry

As State coffers have run dry owing to the steep contraction of the economy last year, President Ranil Wickremesinghe has instructed all ministries to cut five percent of their allocated budgets for 2023 to manage limited funds by prioritising salary and pension payments to public sector employees.

Exports down for second month in Nov. as global economic slowdown bites

Sri Lanka’s earnings from exports declined for the second consecutive month in November while the trade deficit widened from the previous month, as the global economy slows down amid decades-high inflation and rise in interest rates to tackle the surging prices.

Digitalisation of financial services, a game changer for Sri Lanka: CB chief

As South Asian economies have been focusing on digitalisation efforts to uplift the overall government and financial sector infrastructure, the Central Bank of Sri Lanka asserted that improving focus in this arena....

Central Bank to review single borrower limits to cut banks’ exposure to sovereign

The Central Bank this week said it would review the single borrower limits in a bid to cut the excessive exposure of some banks,

CB lays out policies to restore price stability, macroeconomic strength

The Central Bank yesterday laid out its short to medium-term policy path and a slew of other measures that it intends to roll out primarily to restore price stability and to maintain the financial system’s health, as Sr Lanka struggles to emerge from the worst economic crisis since its independence.

Central Bank announces measures to reactivate inter-bank market

The Central Bank this week announced changes to open market operations to start the year by limiting licensed commercial banks’ access to its Standing Deposit and Lending Facility windows, which together determines the overnight liquidity level in the money market.