Providing analysis and commentary on key economic indicators such as GDP growth, unemployment rates, inflation, and consumer spending.
The Sri Lankan government’s recent decision to absorb a significant portion of SriLankan Airlines’ debt has sparked debate. While the move aims to facilitate the airline’s sale, concerns linger about the burden placed on taxpayers. The Advocata Institute, a public policy think tank, argues that taking over the airline’s loans – amounting to $210 million
The Sri Lankan Rupee has shown signs of strengthening against the US Dollar, according to the Central Bank of Sri Lanka (CBSL). This development marks a significant shift, as it’s the first time since July 5th, 2023, that the buying rate for USD has dipped below Rs. 300. The CBSL reports indicate a buying rate
Sri Lanka appears to be emerging from a challenging economic period. Data indicators point towards a significant decline in inflation and a rise in foreign exchange reserves, suggesting a gradual path towards stability. The Asian Development Bank (ADB) acknowledges this positive momentum and has pledged its continued support through a new Country Partnership Strategy (CPS)
There are positive signs for the Sri Lankan economy as the fourth quarter of 2023 (4Q2023) witnessed a shift towards growth. A report by CT CLSA SECURITIES (PVT) LTD revealed a Gross Domestic Product (GDP) increase of 4.5% YoY (Year-over-Year) in 4Q2023, a significant improvement compared to the sharp contraction of -12.4% experienced in the
Standard Chartered Bank’s Global Research team painted a cautiously optimistic picture of Sri Lanka’s economic future during their 2024 H1 Global Research Briefing held in Colombo. Following the IMF deal, the team noted a significant economic recovery in 2023, a trend expected to continue in 2024 with a focus on commercial debt restructuring. However, they
According to First Capital Research (FCR), Sri Lanka’s economic indicators exhibited positive signs of recovery in February 2024. One significant indicator is the rise in gross official reserves, which reached USD 4.5 billion in January 2024. This growth can be attributed to two factors: an inflow of USD 700 million from multilateral organizations in December
Sri Lanka’s economic landscape is marked by a significant challenge: its burgeoning national debt. In 2022, the country witnessed a concerning peak in its debt-to-GDP ratio, with central government debt exceeding 120% of GDP and public debt surpassing 128%. This alarming situation prompted the government to take decisive action in 2023. They suspended payments on
In a bid to bolster its foreign exchange reserves, Sri Lanka’s central bank made significant purchases totalling $113 million from forex markets in December 2023, bringing the annual total to $1.895 billion, as per official data. This accumulation of reserves was facilitated by the central bank’s deflationary policies, aimed at stabilizing the country’s monetary system
Sri Lanka has achieved a milestone in its energy sector, earning $3 million in revenue from the sale of 5,200 metric tons of fuel through its revived bunkering system for vessels, announced State Minister of Power and Energy, D.V. Chanaka. Speaking to reporters on Thursday, February 8th, Chanaka emphasized the significance of this achievement in
The central bank of Sri Lanka has highlighted the country’s ongoing recovery from economic challenges amidst global risks, emphasizing the crucial role of the International Monetary Fund (IMF) program in maintaining confidence and stability. According to the Monetary Policy Report released in February, the continuation of the IMF Extended Fund Facility (EFF) arrangement and the