Providing analysis and commentary on key economic indicators such as GDP growth, unemployment rates, inflation, and consumer spending.
Sri Lanka is expecting a mission from the International Monetary Fund (IMF) in two weeks, President Ranil Wickremesinghe announced at a campaign rally in Homagama on Wednesday. “In two weeks when the IMF team comes, we must either confirm that we will implement the agreement and receive the next installment, or inform them of any
As of July 2024, Sri Lanka’s central bank continues to face a challenging financial situation, with net foreign reserves remaining in the negative at US$728 million. This represents a significant improvement from mid-2022, when net foreign assets were deeply negative at US$4.6 billion. The drastic decline in reserves in 2022 was driven by borrowing through
Sri Lanka’s ongoing economic recovery program is showing positive results, according to an International Monetary Fund (IMF) spokesperson. The IMF’s next program review and discussions will take place after the formation of a new government following upcoming elections, spokesperson Julie Kozack stated. Kozack noted key economic improvements, including a revival in growth, declining inflation, better
Port City Colombo announced that Parliament officially passed two key offshore banking regulations, Offshore Banking and Offshore Banking – Prudent Management and Confidence, on September 4, 2024. This significant development aligns with Port City Colombo’s ambition to establish itself as a prominent regional financial centre, attracting increased Foreign Direct Investment (FDI) into Sri Lanka. Seven
Western Automobile Assembly Private Limited (WAA) has proudly announced the opening of its advanced SKD assembly plant in Kuliyapitiya. This state-of-the-art facility, representing a significant investment of approximately USD 27 million, is set to revolutionize local vehicle assembly operations. The plant’s first assembled vehicle, a 15-seater passenger van, is expected to roll out by the
Sri Lanka has successfully restructured defaulted loans and past due interest owed to the Export Import Bank of China, transforming them into $4.187 billion in new loans, according to the Finance Ministry’s June 2024 debt bulletin. In March 2024, Sri Lanka owed $3.993 billion to the Exim Bank of China, including $903.8 million in arrears.
The Finance Ministry has announced a reduction in the cess levy on imported cement by Rs. 1 per kilogram, effective from 6 September 2024. This adjustment was made under the authority of Ranil Wickremesinghe, Minister of Investment Promotion, and with the agreement of the Minister of Finance, Economic Stabilisation, and National Policies. This decision revises
Sri Lanka’s private sector credit expanded by Rs. 60 billion in July 2024, following a Rs. 74 billion rise in June, according to official data. Meanwhile, credit to state-owned enterprises (SOEs) decreased during the same period. In July, banks extended Rs. 82.7 billion in loans to the government, with much of this being interest roll-overs,
The recent surge in natural rubber prices has led the global rubber industry to anticipate a consumer shift from natural rubber products to synthetic alternatives, according to insights from The Daily Morning Business. Pushpika Janadheera, Chairperson of the Sri Lanka Association of Manufacturers and Exporters of Rubber Products (SLAMERP) and Managing Director of Dipped Products
A broader conflict in the Middle East could significantly impact Sri Lanka’s tea exports, petroleum imports, and remittance inflows, according to the Central Bank of Sri Lanka (CBSL). The CBSL highlighted that the country has substantial trade exposure to the region, with nearly 46% of its tea exports directed to Middle Eastern markets. Additionally, tea