Sri Lanka reduces interest rates for 1st time since bankruptcy as economy shows signs of rebounding
1 year, 7 months ago

Sri Lanka reduces interest rates for 1st time since bankruptcy as economy shows signs of rebounding

Associated Press  

COLOMBO, Sri Lanka — The Central Bank of Sri Lanka reduced its interest rates Thursday for the first time since the island nation declared bankruptcy, after stern fiscal controls, improved foreign currency income and help from an International Monetary Fund program resulted in inflation slowing faster than expected. The Central Bank said in a statement that the lending and deposit interest rates were reduced by 250 basis points to 14% and 13%. Inflows of foreign money have been robust since the agreement with the IMF, aided by import controls, increased income from tourism and worker remittances, allowing the Central Bank to strengthen its reserves, the statement said. “The economy is projected to rebound gradually from late 2023, supported by the easing of monetary conditions, improvements in business and investor sentiments along with the realization of improved foreign exchange inflows, the faster recovery of the tourism sector, and the implementation of growth promoting policy measures,” the Central Bank said.

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Deflation to Provide ‘Respite’ to Sri Lankans, Says Governor
Trending News
1 day, 18 hours ago

Deflation to Provide ‘Respite’ to Sri Lankans, Says Governor

Live Mint  

-- A deflationary environment in Sri Lanka is expected to continue in early 2025, according to the central bank governor, highlighting a change in scenario for the South Asian nation that had struggled with high prices during an unprecedented economic crisis. The country’s inflation is projected to converge to the target level of 5% during the second half of the …

Sri Lanka c. bank to focus on stronger crisis recovery in 2025
1 day, 18 hours ago

Sri Lanka c. bank to focus on stronger crisis recovery in 2025

Live Mint  

By Uditha Jayasinghe COLOMBO, Jan 8 - Sri Lanka will focus on stronger recovery this year after the island nation posted real GDP growth of 5% in 2024, the highest in seven years, its central bank chief said on Wednesday, hoping to accelerate a rebound from its worst financial crisis in decades. Sri Lanka's economy crumpled under a severe foreign …

Moody’s upgrades Sri Lanka’s rating to ‘Caa1’ after creditors’ approval of $12.55 billion debt restructuring
2 weeks, 3 days ago

Moody’s upgrades Sri Lanka’s rating to ‘Caa1’ after creditors’ approval of $12.55 billion debt restructuring

Live Mint  

Global credit ratings agency Moody's on Monday, December 23, raised the long-term foreign currency issuer rating of the South-Asian nation, Sri Lanka, reported the news agency Reuters. The long-term foreign currency issuer rating has now been raised to “Caa1” from its previous level of “Ca” with a stable outlook after the nation's creditors approved a $12.55 billion debt restructuring last …

Sri Lanka declares end of debt default, says economic crisis was ‘man made’
2 weeks, 5 days ago

Sri Lanka declares end of debt default, says economic crisis was ‘man made’

Live Mint  

Sri Lanka’s Finance Ministry said on Saturday the island nation has officially ended its debt default. In a statement, Mahinda Siriwardana, a top bureaucrat in the Finance Ministry said: “December 20 marked a major milestone in our economic recovery process as Sri Lanka officially exited sovereign default.” The island nation had plunged into an economic crisis when it declared sovereign …

Sri Lanka officially ended debt default, claims Finance Ministry
2 weeks, 5 days ago

Sri Lanka officially ended debt default, claims Finance Ministry

Deccan Chronicle  

Colombo: With the decision by the Hong Kong based Fitch Ratings to upgrade Sri Lanka's credit rating, the island nation has officially ended its debt default, the Finance Ministry said here on Saturday. Fitch upgraded Sri Lanka's long term credit default rating to CCC+ from CCC- on Friday as it said that "the risk of another default on local currency …

Sri Lanka To Ink Debt Deals By Year's End: Economic Development Deputy Minister
1 month ago

Sri Lanka To Ink Debt Deals By Year's End: Economic Development Deputy Minister

Deccan Chronicle  

Colombo: Cash-strapped Sri Lanka vowed Thursday to complete its long-delayed foreign debt restructure within the month before a 2025 budget adhering to strict revenue targets set by the International Monetary Fund. Economic Development Deputy Minister Anil Jayantha Fernando said debt restructuring had been delayed by more than two years, costing the country an additional 1.7 billion dollars in accumulated interest. …

Sri Lanka records highest deflation since 1961
1 month, 1 week ago

Sri Lanka records highest deflation since 1961

Deccan Chronicle  

Colombo: Sri Lanka's consumer prices fell by 2.1 percent in November, the highest deflation rate recorded by the economically fragile island nation since 1961, official data showed Saturday. Since then, a $2.9 billion bailout loan from the International Monetary Fund, tax hikes and other austerity measures have slowly made headway in repairing the island's economy. "Headline inflation will remain negative …

5 things about Sri Lanka's debt swap deal to end first-ever external loan default
1 month, 1 week ago

5 things about Sri Lanka's debt swap deal to end first-ever external loan default

Firstpost  

Sri Lanka’s Finance Ministry has called the deal a “milestone” in rebuilding its economy, while President Anura Dissanayake, who took office in September, stressed the importance of this agreement for future stability. Sri Lanka is looking to resolve its first-ever external debt default. AFP Sri Lanka has launched a $12.5 billion debt swap initiative to resolve its first-ever external default …

Sri Lanka’s Marxist-leaning president appoints his Cabinet after a resounding election win
1 month, 3 weeks ago

Sri Lanka’s Marxist-leaning president appoints his Cabinet after a resounding election win

Live Mint  

COLOMBO, Sri Lanka — Sri Lanka’s new Marxist-leaning president swore in a 21-member Cabinet on Monday after his party secured a two-thirds parliamentary majority in last week’s election. Sri Lanka’s crisis was largely the result of economic mismanagement combined with fallout from the COVID-19 pandemic, which along with militant attacks in 2019 devastated the important tourism industry. Sri Lanka’s economic …

​Back from the brink: The Hindu Editorial on the Sri Lankan elections and the road ahead
4 months, 3 weeks ago

​Back from the brink: The Hindu Editorial on the Sri Lankan elections and the road ahead

The Hindu  

Sri Lanka’s ninth presidential election, scheduled for September 21, has attracted a record 39 candidates, signalling a return to “business as usual” despite the severe economic crisis of 2022. At 75, he aims to garner broad support by highlighting the political and economic stability achieved during his two-year tenure, made possible by backing from the Sri Lanka Podujana Peramuna, led …

Sri Lanka will hold presidential election on Sept. 21, its first since declaring bankruptcy in 2022
5 months, 2 weeks ago

Sri Lanka will hold presidential election on Sept. 21, its first since declaring bankruptcy in 2022

Associated Press  

COLOMBO, Sri Lanka — Sri Lanka will hold a presidential election on Sept. 21 that will likely be a test of confidence in President Ranil Wickremesinghe’s efforts to resolve the country’s worst economic crisis. Sri Lanka’s crisis was largely the result of staggering economic mismanagement combined with fallout from the COVID-19 pandemic, which along with 2019 terrorism attacks devastated its …

Sri Lanka cuts rates by 25 basis points to foster growth
5 months, 2 weeks ago

Sri Lanka cuts rates by 25 basis points to foster growth

The Hindu  

Sri Lanka's central bank cut interest rates by 25 basis points in a surprise decision on July 24 to support economic growth and propel the South Asian nation out of its worst financial crisis in decades. The Central Bank of Sri Lanka reduced the Standing Deposit Facility Rate to 8.25% and the Standing Lending Facility Rate to 9.25%, it said …

Sri Lanka reaches deal on debt restructuring with bilateral creditors including China and France
6 months, 2 weeks ago

Sri Lanka reaches deal on debt restructuring with bilateral creditors including China and France

Associated Press  

COLOMBO, Sri Lanka — Sri Lanka’s President Ranil Wickremesinghe announced a debt restructuring deal with countries including India, France, Japan and China in a televised address to the nation Wednesday. Similarly, we signed another agreement with China’s Exim Bank today in Beijing.. Sri Lanka won,” Wickremesinghe said. Sri Lanka declared bankruptcy in April 2022 and suspended repayments on some $83 …

Economic conditions in debt-stricken Sri Lanka improving, IMF says
9 months, 2 weeks ago

Economic conditions in debt-stricken Sri Lanka improving, IMF says

Al Jazeera  

IMF says inflation has dropped from 70 percent, economy expanded in the second half of 2023. The economic situation in debt-stricken Sri Lanka has started to gradually improve following its worst economic crisis two years ago, the International Monetary Fund has said. Sri Lanka’s year-on-year economic expansion in the third quarter of 2023 was 1.6 percent, and in the fourth …

IMF says the economic situation in debt-stricken Sri Lanka is gradually improving
9 months, 2 weeks ago

IMF says the economic situation in debt-stricken Sri Lanka is gradually improving

Associated Press  

COLOMBO, Sri Lanka — The economic situation in debt-stricken Sri Lanka has started to gradually improve following its worst economic crisis two years ago, the International Monetary Fund said Thursday. Sri Lanka’s year-on-year economic expansion in the third quarter of 2023 was 1.6% and in the fourth quarter 4.5%, the IMF said. The economic crisis in early 2022 left Sri …

Sri Lankan president says he is seeking to defer loan payments until 2028 amid economic crisis
10 months ago

Sri Lankan president says he is seeking to defer loan payments until 2028 amid economic crisis

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Sri Lanka's president said Wednesday …

Sri Lankan president says he is seeking to defer loan payments until 2028 amid economic crisis
10 months ago

Sri Lankan president says he is seeking to defer loan payments until 2028 amid economic crisis

Associated Press  

COLOMBO, Sri Lanka — Sri Lanka’s president said Wednesday that he is seeking a loan repayment moratorium until 2028 as the debt-ridden county tries to emerge from bankruptcy. Sri Lanka declared bankruptcy in April 2022 and suspended repayments on some $83 billion in local and foreign loans amid a severe foreign exchange crisis that led to a severe shortage of …

Sri Lanka’s Financial Crisis Gradually Easing: Ranil Wickremesinghe
11 months ago

Sri Lanka’s Financial Crisis Gradually Easing: Ranil Wickremesinghe

News 18  

Cash-strapped Sri Lanka is “gradually” emerging from its worst economic crisis after the austerity of an IMF bailout, the president said Sunday in a speech to mark independence day. Sri Lanka saw months of civil unrest at the peak of the economic crisis, culminating in the ouster of then-president Gotabaya Rajapaksa when thousands of protesters stormed his home. The International …

Crisis-ridden Sri Lanka’s economic reforms are yielding results, but challenges remain, IMF says
11 months, 3 weeks ago

Crisis-ridden Sri Lanka’s economic reforms are yielding results, but challenges remain, IMF says

Associated Press  

COLOMBO, Sri Lanka — Debt-stricken Sri Lanka’s economic reform program is yielding the first signs of recovery, but the improvements still need to translate into improved living conditions for its people, the International Monetary Fund said Friday. “The economic reform program implemented by the Sri Lankan authorities is yielding the first signs of recovery,” said Pete Breuer, the IMF’s senior …

Sri Lanka says debt restructure finalised by April
11 months, 4 weeks ago

Sri Lanka says debt restructure finalised by April

The Hindu  

Sri Lanka's bankrupt government said Friday that a foreign debt restructure would be finalised by the beginning of April, after signs the economy was emerging from its worst crisis on record. The IMF released a $337-million second tranche of its four-year loan last month after Colombo secured an "in principle" debt agreement with China, Sri Lanka's biggest bilateral lender. Mr. …

Sri Lanka says it struck a deal with creditors on debt restructuring to clear way for IMF funds
1 year, 1 month ago

Sri Lanka says it struck a deal with creditors on debt restructuring to clear way for IMF funds

Associated Press  

COLOMBO, Sri Lanka — Sri Lanka said Wednesday that it has reached an agreement in principle with a group of creditors including India and Japan on debt restructuring, a crucial move toward unlocking a second instalment of a $2.9 billion bailout package from the International Monetary Fund. The agreement with the Official Creditor Committee covers approximately $5.9 billion of outstanding …

Sri Lanka says it has reached an agreement with China’s EXIM Bank on debt, clearing IMF funding snag
1 year, 2 months ago

Sri Lanka says it has reached an agreement with China’s EXIM Bank on debt, clearing IMF funding snag

Associated Press  

COLOMBO, Sri Lanka — Sri Lanka says it has reached an agreement with the Exim Bank of China on key terms and principles for restructuring its debt, a key step toward unlocking a second instalment of a $2.9 billion package from International Monetary Fund aimed at rescuing the island nation from a dire economic crisis. The finance ministry said in …

ECONOMIC PERSPECTIVES | Sri Lankan debt crisis to get worse if IMF prescription is heeded
1 year, 5 months ago

ECONOMIC PERSPECTIVES | Sri Lankan debt crisis to get worse if IMF prescription is heeded

The Hindu  

Published : Jul 13, 2023 11:00 IST - 6 MINS READ On July 1, Sri Lanka’s parliament approved, through a majority 122-62 vote, a plan to restructure the government’s domestic debt, which totalled 15.4 trillion Sri Lankan rupees at the end of March 2023. At that point in time, of the government’s total debt of $86.5 billion, $46.9 billion was …

Sri Lankan Central Bank moots recast of pension funds, haircut on sovereign bonds
1 year, 6 months ago

Sri Lankan Central Bank moots recast of pension funds, haircut on sovereign bonds

The Hindu  

Sri Lanka’s Central Bank has proposed restructuring the beleaguered nation’s debt by recasting the outgo on the country’s pension funds and offering international sovereign bondholders a repayment plan that entails a 30% haircut. Addressing a media briefing in Colombo Thursday morning, Central Bank Governor Nandalal Weerasinghe unveiled the Ranil Wickremesinghe government’s domestic debt restructuring plan that seeks to protect local …

Sri Lanka declares five-day holiday to avoid bank run over IMF debt deal
1 year, 6 months ago

Sri Lanka declares five-day holiday to avoid bank run over IMF debt deal

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Sri Lanka has declared a …

Sri Lanka has no money to hold presidential polls in 2023: Cabinet spokesman
1 year, 6 months ago

Sri Lanka has no money to hold presidential polls in 2023: Cabinet spokesman

Firstpost  

Sri Lanka Cabinet Spokesman Bandula Gunawardena said that no elections would be possible this year as the state finances have not improved Economic crisis hit Sri Lanka will not be holding a snap presidential election this year as the government wants to focus on debt restructuring, said Cabinet Spokesman Bandula Gunawardena. Denying speculations that the government might opt to hold …

IMF says Sri Lanka’s economic recovery shows signs of improvement but challenges remain
1 year, 7 months ago

IMF says Sri Lanka’s economic recovery shows signs of improvement but challenges remain

Associated Press  

COLOMBO, Sri Lanka — Debt-stricken Sri Lanka, which declared bankruptcy last year, is showing signs of economic improvement but its recovery still faces challenges, the International Monetary Fund said Friday. But the economic recovery remains challenging,” said IMF deputy managing director Kenji Okamura after concluding a visit to Sri Lanka, where he met with the country’s top leaders and officials. …

Sri Lanka cuts policy rates to reduce inflation and boost economic recovery
1 year, 7 months ago

Sri Lanka cuts policy rates to reduce inflation and boost economic recovery

The Hindu  

On June 1, Sri Lanka’s Central Bank slashed the policy interest rates by 250 basis points, the first since the “historic contraction” of the island nation’s economy in 2022, saying it will reduce high inflation and provide an impetus for growth. The Monetary Board of the Central Bank of Sri Lanka decided to cut the policy rate by 250 basis …

Sri Lanka trying to reduce overall debt by $17 billion, president says
1 year, 8 months ago

Sri Lanka trying to reduce overall debt by $17 billion, president says

Live Mint  

Sri Lanka is trying to reduce its overall debt by $17 billion through restructuring, its president told the parliament on Wednesday as he sought support of opposition parties for a nearly $3 billion International Monetary Fund programme. President Ranil Wickremesinghe also said the country would discuss debt restructuring with India and the Paris Club of creditors on one platform and …

Crisis-hit Sri Lanka to see economic contraction in 2023: Report
1 year, 9 months ago

Crisis-hit Sri Lanka to see economic contraction in 2023: Report

Live Mint  

Crisis-hit Sri Lanka is estimated to see a contraction in its economic growth this year, according to Asian Development Bank data. The Washington-based financial body has recently approved a 48-month arrangement under the Extended Fund Facility of about USD 3 billion to support Sri Lanka's economic policies and reforms. The needed reforms, according to the development bank's Asian Development Outlook …

Sri Lanka to opt for domestic debt restructuring post-IMF bailout: Government
1 year, 9 months ago

Sri Lanka to opt for domestic debt restructuring post-IMF bailout: Government

The Hindu  

Cash-strapped Sri Lanka is exploring the options for domestic debt restructuring in the post-IMF bailout scenario to further stabilise its shaken economy, an official statement said on Friday. Explained | Understanding IMF bailouts In a statement issued by the Sri Lankan government after making an investor presentation on Thursday, the Governor of the Central Bank and the Secretary to the …

Sri Lanka slashes fuel prices in welcome relief amid crisis
1 year, 9 months ago

Sri Lanka slashes fuel prices in welcome relief amid crisis

Firstpost  

Colombo: Sri Lanka’s government on Wednesday announced significant cuts in fuel prices, providing welcome relief for many after a year of shortages and skyrocketing prices amid the country’s worst economic crisis. Sri Lanka earlier this month secured approval of a $2.9 billion IMF bailout program a key step in its recovery from a crisis brought on by the pandemic and …

IMF approves $3-billion bailout for Sri Lanka; tackling corruption a key condition
1 year, 9 months ago

IMF approves $3-billion bailout for Sri Lanka; tackling corruption a key condition

The Hindu  

The International Monetary Fund on March 20 cleared a $3 billion-Extended Fund Facility for Sri Lanka, potentially unlocking more loans for the debt-ridden island nation that is struggling to recover from last year’s economic meltdown. Identifying corruption as a key issue, an IMF “governance diagnostic mission” has started assessing Sri Lanka’s governance and anti-corruption framework in its first such exercise …

Sri Lanka seeks 10-year debt moratorium ahead of IMF bailout
1 year, 9 months ago

Sri Lanka seeks 10-year debt moratorium ahead of IMF bailout

The Hindu  

Cash-strapped Sri Lanka is seeking a 10-year moratorium on its foreign debt, President Ranil Wickremesinghe’s office said on March 20, 2023 on the eve of a desperately needed $2.9 billion IMF bailout. The IMF’s executive board was expected to sign off on Colombo’s bailout application later on Monday after a long delay in securing financial assurances from China, Sri Lanka’s …

Sri Lanka’s economy shrank by record 7.8 percent last year
1 year, 9 months ago

Sri Lanka’s economy shrank by record 7.8 percent last year

Al Jazeera  

The contraction is the biggest in the crisis-hit island nation’s 75 years of independence. Sri Lanka’s crisis-hit economy shrank by a record 7.8 percent last year, official data shows, as the country struggles with its worst financial crisis in seven decades. President Ranil Wickremesinghe has raised taxes and ended generous subsidies on fuel and electricity to boost government revenue after …

Sri Lanka's crisis-hit economy shrank by record 7.8% last year
1 year, 9 months ago

Sri Lanka's crisis-hit economy shrank by record 7.8% last year

Firstpost  

An unprecedented economic crisis sparked huge protests in the island nation, culminating last July when a mob stormed the home of then-president Gotabaya Rajapaksa, forcing him to flee the country and resign Colombo, Sri Lanka: Sri Lanka’s crisis-hit economy shrank a record 7.8 per cent last year as long blackouts and critical fuel shortages put a chokehold on local commerce, …

Sri Lanka's central bank raises interest rates in anticipation of IMF bailout
1 year, 10 months ago

Sri Lanka's central bank raises interest rates in anticipation of IMF bailout

India TV News  

Sri Lanka's central bank on Friday decided to raise both deposit and lending interest rates in anticipation of the finalisation of a much-needed bailout facility from the IMF, the governor Nandalal Weerasinghe told reporters. “Given the necessity of fulfilling all the ‘prior actions’ in order to move forward with the finalisation of the IMF Extended Fund Facility arrangement, the Monetary …

Sri Lanka hikes power prices by 66% hoping to ensure IMF bailout
1 year, 10 months ago

Sri Lanka hikes power prices by 66% hoping to ensure IMF bailout

Firstpost  

The IMF has agreed to lend Sri Lanka $2.9 billion in September to overcome its worst financial crisis in seven decades, but the bailout comes with conditions that include raising taxes, removing subsidies and cutting public sector debt Colombo: Amid a full-blown economic crisis, Sri Lanka on Thursday raised electricity prices by 66%, in a move that the government hopes …

Sri Lanka bankruptcy to last until 2026: president
1 year, 11 months ago

Sri Lanka bankruptcy to last until 2026: president

Firstpost  

Tax increases and the removal of fuel and electricity subsidies have been unpopular among Sri Lanka’s public, already hit hard by the crisis and rampant inflation Colombo: Sri Lanka’s president said Wednesday the island nation will remain bankrupt for at least three more years as he works to repair battered government finances following an unprecedented economic crisis. I want to …

Sri Lanka economy could shrink by -3.5% to -4%, President says
1 year, 11 months ago

Sri Lanka economy could shrink by -3.5% to -4%, President says

The Hindu  

Sri Lanka's economy could contract by -3.5 or -4.0% in 2023 after shrinking -11% last year, President Ranil Wickremesinghe said on Saturday. Speaking at a religious event, he said: "The growth rate of the economy in 2022 was -11% and could be -3.5 or -4.0% this year." If economic programs which includes difficult changes in policy such as higher taxes, …

Sri Lanka says debt-restructuring talks making progress
1 year, 11 months ago

Sri Lanka says debt-restructuring talks making progress

Associated Press  

COLOMBO, Sri Lanka — Debt-stricken Sri Lanka’s Central Bank chief said Wednesday that the country is making good progress in talks with its creditors to obtain financial assurances for debt restructuring, an important step toward finalizing an International Monetary Fund rescue plan. “Other bilateral creditors, Paris Club, China and small bilateral creditors are in the process of issuing financial assurances,” …

Explained: India's big role in helping Sri Lanka tide over its worst-ever economic crisis
1 year, 11 months ago

Explained: India's big role in helping Sri Lanka tide over its worst-ever economic crisis

Firstpost  

India emerged as the top bilateral lender to Sri Lanka in 2022 as the island nation declared bankruptcy and defaulted on its $51 billion foreign debt. Let’s have a closer look at how India has been at the centre of providing aid to crisis-hit Sri Lanka despite the island nation’s growing ties with China. China takes a back seat While …

Sri Lanka’s government cuts expenses as economy tanks
1 year, 11 months ago

Sri Lanka’s government cuts expenses as economy tanks

Associated Press  

COLOMBO, Sri Lanka — Sri Lanka’s government said Tuesday it was cutting down expenses in the latest austerity drive to help it recover from its worst economic crisis. He said that the government was “trying its best to curtail other expenses too.” Sri Lanka’s Parliament last month approved a 5.82 trillion rupee budget, which provides for the restructuring of state-owned …

Bankrupt Sri Lanka Says Treasury Running Dry, Cuts Spending
1 year, 11 months ago

Bankrupt Sri Lanka Says Treasury Running Dry, Cuts Spending

News 18  

Bankrupt Sri Lanka announced on Tuesday sharp government spending cuts and warned it had barely enough revenue to pay public salaries and pensions despite huge tax hikes. The island nation has defaulted on its $46 billion public debt and is negotiating an International Monetary Fund bailout after an unprecedented economic crisis last year brought widespread misery. President Ranil Wickremesinghe ordered …

Cancel Sri Lanka’s debt, global scholars tell creditors
2 years ago

Cancel Sri Lanka’s debt, global scholars tell creditors

The Hindu  

Sri Lanka’s recovery from last year’s devastating economic crisis will need its creditors to “share the burden” of debt restructuring, leading global economists have said, calling all lenders to cancel the debt of the cash-strapped island nation. In a statement issued on Sunday, eminent economists and scholars world over observed that amid Sri Lanka’s crucial debt negotiations, “all lenders — …

Sri Lanka aims to hike taxes in budget to soften crisis
2 years, 1 month ago

Sri Lanka aims to hike taxes in budget to soften crisis

Associated Press  

COLOMBO, Sri Lanka — Sri Lanka’s president on Monday proposed to more than double the country’s tax revenue as the island nation struggles to come out from its worst economic crisis. “These tax reforms will help increase revenue in 2023 and beyond, enabling to move away from costly monetary financing to cover government expenditure in the future,” said Wickremesinghe. According …

ECONOMIC PERSPECTIVES | Can austerity end the Sri Lanka crisis?
2 years, 2 months ago

ECONOMIC PERSPECTIVES | Can austerity end the Sri Lanka crisis?

The Hindu  

Published : Oct 20, 2022 10:15 IST In May 2022, Sri Lanka was declared to be in default on payments against external borrowings that were due on April 18. Moreover, the IMF staff-level agreement has yet to go through the organisation’s board and is likely to receive support only if other creditors agree to a plan that ensures “restructuring” and …

Sri Lanka to unveil debt restructuring plan to creditors amid economic crisis
2 years, 3 months ago

Sri Lanka to unveil debt restructuring plan to creditors amid economic crisis

Hindustan Times  

Sri Lankan authorities will formally hold talks with international creditors on Friday to start the process of restructuring billions of dollars of its debt and share plans to tackle the island's worst economic crisis in more than seven decades. Sri Lanka's finance and other officials plan to hold a virtual interactive session to share the objectives of its loan package …

Sri Lanka’s Story of Sovereign Default
2 years, 3 months ago

Sri Lanka’s Story of Sovereign Default

The Diplomat  

Sri Lanka has been on a quite a ride this last year. The country defaulted on its foreign debt on April 12 and in July witnessed the resignation of an executive president – both for the first time in Sri Lanka’s history. The tax cuts resulted in a credit rating downgrade in December 2019, making it difficult for Sri Lanka …

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