All Stories in Economic

Hard-pressed to secure funding?

Hard-pressed to secure funding?

Moody’s on Monday downgraded Sri Lanka’s sovereign credit rating by two notches, saying the South Asian nation would be hard-pressed to secure funding to service its huge foreign debt. Sri Lanka was pushed down from “B2” (high credit risk) to “Caa1” (very high credit risk), …

Living off borrowed money

Living off borrowed money

As Sri Lanka struggles with outstanding foreign debt, rural households across the country have been living off borrowings after exhausting their savings. Meera Srinivasan reports on how those already struggling with severe economic hardships are now grappling with …

Chinese Investment  and the BRI in Sri Lanka

Chinese Investment and the BRI in Sri Lanka

Chatham House commissioned a study of Chinese outbound investment and the BRI in Sri Lanka. The study, which is the basis for this paper, focused on several issues concerning Chinese …

Sri Lanka among most vulnerable

Sri Lanka among most vulnerable

The Economist Magazine has ranked Sri Lanka amongst its most vulnerable states that have been worst affected economically by the coronavirus pandemic, as Colombo faces massive debt repayments this year. In its ranking of 66 states, using four ranking factors, Sri Lanka was ranked 61st …

Squeezed by foreign lenders

Squeezed by foreign lenders

As Sri Lanka battles COVID-19 with its public health expertise and military might, it is gearing up for another imminent crisis — servicing its mounting external debt, of which $2.9 billion is due this year. Of the many economic side effects of the global pandemic, …

Economy returning to normalcy

Economy returning to normalcy

SL’s economy is recovering from the Easter Sunday terrorist attacks last year, with GDP growth projected at 3.7% in 2020, a team of IMF staff who was in Colombo said. Ambitious structural and institutional reforms are needed to anchor policy priorities, bolster competitiveness and foster …

Central Bank surprises markets

Central Bank surprises markets

Sri Lanka’s central bank cut its key interest rates on Friday, in a surprise move to boost sluggish growth after the country’s tourism sector and investments plummeted following the deadly Easter Day bomb attacks by Islamist militants. It reduced the standing deposit facility rate (SDFR) …

Indian Tea likely to benefit from  wage hike

Indian Tea likely to benefit from wage hike

Indian Tea is likely to gain benefit from wage hike in Sri Lankan plantations and pesticide problems in Vietnam. India is the second largest producer of Tea in the world and contributes 26% to the global production. The expected wage hike in Sri Lankan plantations …

IMF delays discussion

IMF delays discussion

The International Monetary Fund (IMF) said on Tuesday it had delayed discussions on Sri Lanka’s next loan tranche due to the country’s political crisis. The IMF has disbursed over $1 billion out of a $1.5 billion three-year extended fund facility (EFF) loan it agreed in …

Reforms need to bring transparency, accountability and cost-efficiency

Reforms need to bring transparency, accountability and cost-efficiency

A staff team from the International Monetary Fund (IMF) led by Manuela Goretti visited Colombo during September 13-27, 2018 to hold discussions on the fifth review of the Sri Lanka’s economic program supported by a three-year Extended Fund Facility (EFF). The mission said after a …