Sri Lanka will provide interest relief for pawn advances up to Rs. 100,000, as announced by Cabinet Spokesperson Minister Bandula Gunawardena. This measure is aimed at assisting low-income families struggling with high interest rates on pawning advances. The Cabinet has approved a program through the General Treasury to grant interest relief of up to 10%
Sri Lanka’s central government net debt decreased to 36.3 billion USD in 2023, down from 37.5 billion USD in 2022, despite borrowing 1.57 billion USD to finance the budget deficit, according to official data. The reduction in net debt occurred as the central bank did not print money to enforce policy rates, eliminating forex shortages
In June 2024, Sri Lanka’s central bank was a net seller in the foreign exchange market, selling $57 million to banks without purchasing any dollars. This follows a previous trend where the central bank bought $224.5 million and sold $32 million in May. The build-up of excess liquidity reached 200 billion rupees due to dollar
Sri Lanka and its sovereign bondholders have come to an agreement to exchange $14.43 billion in defaulted bonds and overdue interest for new instruments tied to future GDP growth, governance, and standard fixed interest bonds. Bondholders have consented to an 11% haircut on $1.889 billion of overdue interest, as opposed to an earlier proposal, according