All Stories in Economic

Indian companies keen to invest

Indian companies keen to invest

The Associated Chambers of Commerce and Industry of India (Assocham) will explore the “virgin market” in Jaffna, located in Sri Lanka’s Tamil-majority Northern Province, for possible business collaborations and to help commercially rebuild the former war-zone, a representative of the trade body said. Representatives of …

Port Loans Contributed to Debt Trap

Port Loans Contributed to Debt Trap

On Thursday, the government of Sri Lanka admitted that it was stuck in a “gigantic debt trap” from the previous administration’s construction loans, some of which were used to build deep sea terminals at the quiet port of Hambantota. Sri Lanka recently entered into a controversial deal to …

IMF commends Sri Lanka

IMF commends Sri Lanka

The International Monetary Fund (IMF) has commended the new strategy of Sri Lankan Government to create financial discipline and lead the country in a correct path to economic development. Managing Director of the International Monetary Fund Christine Lagarde said she highly values the Sri Lankan …

Fitch revises outlook Banks

Fitch revises outlook Banks

Fitch Ratings has affirmed the Long-Term Issuer Default Ratings (IDRs) of the following Sri Lanka-based banks: – National Savings Bank (NSB) at ‘B+’; Outlook Negative – Bank of Ceylon (BOC) at ‘B+’; Outlook Negative – DFCC Bank PLC (DFCC) at ‘B+’; Outlook Negative Fitch has …

Rating upgrade depends on meeting IMF conditions

Rating upgrade depends on meeting IMF conditions

Support from the IMF has helped to mitigate external liquidity risks and reduced the medium-term default risks in several frontier markets that entered into new programmes in 2016, Fitch Ratings says. However, potential improvements in sovereign credit profiles will depend on each country’s level of …

Defending rupee not ‘sensible’

Defending rupee not ‘sensible’

Sri Lanka’s central bank governor Indrajith Coomaraswamy on Tuesday said defending the rupee with foreign exchange reserves ‘doesn’t seem sensible’ as it has always been followed by a sharp depreciation in the currency. Coomaraswamy’s comments come days after the central bank, which earlier had defended …

Sri Lanka drifting

Sri Lanka drifting

Sri Lanka is in a period of dangerous policy drift with mediocre governance which is inherently unstable with the danger of falling back to a ‘big man illiberal’ politics is getting nearer, a top economist and policy analyst has said. It is two years since …

Sri Lanka’s commitment to fiscal consolidation faces downside implementation

Sri Lanka’s commitment to fiscal consolidation faces downside implementation

Moody’s Investors Service says that Sri Lanka’s (B1 negative) program with the International Monetary Fund (IMF) has helped stabilize the balance of payments and established an ambitious roadmap to fiscal consolidation and structural reform. However, sustained implementation of reforms will be challenging. The 2017 budget …

$1.34B World Bank loan

$1.34B World Bank loan

Sri Lanka has secured $1.34 billion in loans from the World Bank to boost the cash-strapped island’s economy over the next three years, the finance ministry said Saturday. The loans would be at concessionary rates and repayments spread out over 15 years, the ministry said …

The 2016 fiscal targets are within reach

The 2016 fiscal targets are within reach

The International Monetary Fund (IMF) said Sri Lanka’s performance under its Extended Fund Facility (EFF) “broadly satisfactory” and praised the Government for exceeding targets in revenue collection but warned increasing …