All Stories in Economic

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 …

Economic nationalism backfires

Economic nationalism backfires

Classical liberal economists have long argued that free trade leads to peace, and economic nationalism and protectionism (which usually also involves minority oppression and ethno religion fascism) lead to soured international relations and war. Russian tactics to block the import of Sri Lanka tea over …

China leads Sri Lanka’s FDI

China leads Sri Lanka’s FDI

Sri Lanka attracted $1.63 billion in foreign direct investments (FDI) in 2017, a record high, according to data released by Sri Lanka’s Board of Investment on Monday, with about 35% of it coming from China, making China the country’s largest source of FDI. Malik Samarawickrama, …

Tea exports to China witnesses a boom

Tea exports to China witnesses a boom

Sri Lanka’s tea exports to China surged 30 percent to 9.9 million kilos in 2017 from the year before, making it the eighth biggest market for Ceylon tea, local media, quoting the Sri Lanka Tea Board said here Thursday. Minister of Plantation Industries Naveen Dissanayake …

Local investors are buying blue-chip shares

Local investors are buying blue-chip shares

Sri Lankan shares snapped a seven-session streak of declines on Friday, recovering from a near three-week closing low hit in the previous session, as investors picked up battered blue-chip and banking shares. However, foreign investors, who have been net buyers of 2.7 billion rupees worth …

Economy expected to return to a high and inclusive growth trajectory

Economy expected to return to a high and inclusive growth trajectory

The IMF  released the ‘staff’ report pertaining to the third review of the Extended Arrangement Under the Extended Fund Facility with Sri Lanka on 12 January 2018. The IMF report …

Government liquidity and external vulnerability risks will remain elevated.

Government liquidity and external vulnerability risks will remain elevated.

Moody’s Investors Service says that Sri Lanka’s (B1 negative) high general government debt levels, very low debt affordability, and fragile external payments position continue to present the sovereign with material credit challenges. In particular, persistently high government liquidity and external vulnerability risks will maintain pressure …

Timely progress in structural reforms will support fiscal consolidation.

Timely progress in structural reforms will support fiscal consolidation.

  On December 6, 2017, the Executive Board of the International Monetary Fund (IMF) completed the third review of Sri Lanka’s economic performance under the program supported by a three-year extended arrangement under the Extended Fund Facility (EFF) arrangement. Completion of the review enables the …