All Stories in Economic

High debt burden to limit uplift from tax reforms

High debt burden to limit uplift from tax reforms

Sri Lanka’s high debt burden is likely to limit the benefits of recent tax reforms, rating agency Moody’s Investors Service has said in a new report. “For many sovereigns, measures to broaden the tax base are unlikely to boost fiscal strength unless accompanied by enhanced …

2017 – Economy grew at the lowest rate in 16 years

2017 – Economy grew at the lowest rate in 16 years

Sri Lanka’s economy grew at the slowest pace in 16 years to record a worse than expected 3.1 percent GDP expansion last year, according to the central bank. The Central …

How China trapped Sri Lanka under a mountain of debt

How China trapped Sri Lanka under a mountain of debt

Sri Lanka’s economy is struggling under the weight of massive debts owed to China, with the rupee hitting an all-time low on Monday. The big picture: As the small South Asian country’s economy spirals downward, it’s freeing itself from debts by selling Chinese-funded infrastructure projects …

Push ahead with Vision 2025 objectives

Push ahead with Vision 2025 objectives

  Revenue mobilization can make space for social spending while reducing public debt. Reforms of state-owned enterprises are critical to minimize fiscal risks. Greater exchange rate flexibility and reserve buffers …

Sri Lanka to push ahead with Reforms

Sri Lanka to push ahead with Reforms

Sri Lanka will continue to press ahead with reforms and revenue for the start of the year is on target, junior finance minister Eran Wickramaratne said in an interview. “We are more or less on track” with the reform program, said Wickramaratne, who represents the …

World Bank warns of slowdown

World Bank warns of slowdown

A development success story in many ways, Sri Lanka still faces critical challenges as it strives to become an upper middle-income country. The World Bank Group supports Sri Lanka’s transition …

Central Bank cuts rates amid slow growth, political uncertainty

Central Bank cuts rates amid slow growth, political uncertainty

Sri Lanka’s central bank unexpectedly cut its key lending rates by 25 basis points on Wednesday, as policy makers sought to revitalise an economy battling weak growth and political uncertainty. The move comes as investors worry about political instability in the country after the ruling …

PM wants Cash to Balance China

PM wants Cash to Balance China

Prime Minister Ranil Wickremesinghe said Sri Lanka is seeking foreign investment from India, Japan and others amid criticism over his country’s reliance on Chinese loans for infrastructure projects. In an …

IMF discusses progress of Economic Reform Program

IMF discusses progress of Economic Reform Program

An IMF staff team led by Manuela Goretti visited Colombo from February 27 – March 9 to hold discussions for the 2018 Article IV consultation and advance the technical work …

Operating below potential

Operating below potential

Sri Lanka’s central bank kept its benchmark interest rates unchanged to help bolster an economy that’s been hit by bad weather across the South Asian island. Governor Indrajit Coomaraswamy held the standing lending facility rate at 8.75 percent and the standing deposit facility rate at …