All Stories in Economic

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 …

Debt trap?

Debt trap?

India’s southern neighbour Sri Lanka may plunge further into the Chinese debt trap with Colombo yet again turning to Beijing for fresh loans, which will come during the final quarter …

Vulnerable to rising interest rates

Vulnerable to rising interest rates

Moody’s Investors Service says that the credit profile of the Government of Sri Lanka (B1 negative) is supported by the authorities’ progress in implementing reforms, which entail fiscal consolidation and a build-up of foreign exchange reserves. Sri Lanka also benefits from moderate per capita income …

Sri Lanka faces a number of challenges

Sri Lanka faces a number of challenges

Sri Lanka’s economic outlook remains stable with 4.3% growth expected in the medium term, the World Bank said yesterday, but warned that this would only be possible if the Government remains committed to its reform agenda and warned upcoming elections remain the single biggest risk …

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 …