Category: Economy and Markets
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Fitch Ratings has downgraded Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘C’ from ‘CC’. The issue ratings on foreign-currency bonds issued on international markets have also been downgraded to ‘C’ from ‘CC’. The Long-Term Local-Currency IDR has been affirmed at ‘CCC’ and the Country Ceiling at ‘B-‘. A full list of rating actions […]
Sri Lanka suspends normal debt servicing; announces interim policy on servicing external debt
Sri Lanka’s government has suspended the normal debt servicing of all affected debts, for an interim period pending an orderly and consensual restructuring of those obligations in a manner consistent with an economic adjustment program supported by the IMF. Announcing an interim policy regarding the servicing of Sri Lanka’s external public debt, the Ministry of […]
How is an economic crisis affecting people?
People across Sri Lanka are struggling to get hold of daily essentials as the country faces its worst economic crisis in decades. Sri Lanka is mired in public debt after revenue from tourism evaporated in the wake of the coronavirus pandemic. With the country’s foreign currency reserves dwindling and foreign debt payments around the corner, […]
Sanjeeva Jayawardena & Ranee Jayamaha to continue to serve on Monetary Board: CB Governor
President’s Counsel Sanjeeva Jayawardena and Dr. Ranee Jayamaha, appointed members of the Monetary Board, have acceded to continue to serve on the Monetary Board, Central Bank Governor Dr. Nandalal Weerasinghe said. “As the newly incumbent Governor of the Central Bank of Sri Lanka (CBSL), I am delighted that Mr. Sanjeeva Jayawardena, President’s Counsel and Dr. […]
Technical negotiation with IMF started; RFPs to be called to appoint advisors for debt restructuring
Sri Lanka’s Central Bank has already started technical negotiations with the International Monetary Fund for an IMF program and appointing financial and legal advisors for debt restructuring will be expedited, new Central Bank Governor Nandalal Weerasinghe said. “I want to make it very clear that I am going to exercise the powers vested with the […]
Central Bank significantly tightens its monetary policy; decides to increase SDFR & SLFR by 700bps
The Monetary Board of the Central Bank at its meeting held today has decided to increase the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 700 basis points to 13.50 percent and 14.50 percent, respectively. The Board, having noted the inflationary pressures that could further intensify […]
Nandalal Weerasinghe appointed as CBSL Governor; K M M Siriwardena new Finance Ministry Secretary
Dr. Nandalal Weerasinghe was appointed as the Governor of the Central Bank of Sri Lanka while K.M.M. Siriwardena was appointed as the new Secretary to the Ministry of Finance. President Gotabaya Rajapaksa handed over the letters of appointment this evening (07). Dr. Weerasinghe, who has vast experiences in the financial sector, served as the Alternate […]
‘s official reserves down to USD 1.94bn in March
Sri Lanka’s official reserve assets were 1.9 billion US dollars (USD 1,939mn) by the end of March, further down from 2.3 billion US dollars in February this year, the latest Central Bank data showed. By the end of March, the foreign currency reserves were 1,724 million dollars while the reserve position in the IMF was […]
Presidential Advisory Group appointed to guide officials engaging with IMF
The President has appointed a team of eminent economic and fiscal experts as Members of the Presidential Advisory Group on Multilateral Engagement and Debt Sustainability. The Members of the Advisory Group are: • Dr. Indrajit Coomaraswamy, Former Governor, Central Bank of Sri Lanka and Former Director, Economic Affairs Division of the Commonwealth Secretariat. • Prof. […]
JAAF demands immediate solutions, end to Government’s procrastination
In a recent statement, the apparel industry has urged all stakeholders to put aside differences and work together to resolve the current crisis, which has imposed severe hardships on people and hampered the economy. If the current macroeconomic crisis continues for longer without taking urgent action to address it, the social and economic consequences imposed […]
Bangladesh corporate sector ready to expand economic cooperation with Sri Lanka
Sri Lanka High Commissioner to Bangladesh said that profound historical and cultural relations have lasted between Sri Lanka and Bangladesh and it is time to deepen the economic cooperation between the two countries. High Commissioner Professor Sudharshan Seneviratne highlighted the idea at a meeting held with the President of the Federation of Bangladesh Chamber of […]
ADB forecasts SL’s economic growth to dip to 2.4-pct in 2022
The Asian Development Bank’s (ADB) annual flagship economic publication forecasts a muted recovery from the coronavirus disease (COVID19) pandemic as Sri Lanka’s economy grapples with macroeconomic challenges arising from high debt, low foreign reserves, and inflationary pressures. ADB forecasts Sri Lanka’s economic growth to dip to 2.4% in 2022 and improve marginally to 2.5% in […]