Sri Lanka’s outgoing Power and Energy Minister Kanchana Wijesekara has announced that he leaves the ministry in a stronger financial position, with sufficient stocks of petroleum products and coal for power generation and fuel supply. In a tweet on September 23, Wijesekara emphasized that all institutions under his purview are now operating with positive balance
Sri Lanka has reached an agreement in principle to restructure approximately USD 14.2 billion in sovereign debt with International Sovereign Bond (ISB) holders and has also finalized an agreement with the China Development Bank, according to State Minister of Finance, Shehan Semasinghe. Semasinghe announced on Thursday, September 19, that the ISB deal was secured after
The Cabinet of Ministers has approved the establishment of a Financial Stability Fund aimed at strengthening Sri Lanka’s bank resolution framework as part of the Central Bank of Sri Lanka’s (CBSL) financial crisis management program. The initiative will begin with an initial allocation of Rs. 1 billion from the Ministry of Finance, Economic Stabilisation, and
Sri Lanka’s budget deficit saw a significant reduction of 52% in the first half of 2024, dropping to 515.7 billion rupees. During the same period, government revenues surged by 42% to 1,860.6 billion rupees, driven largely by a 43% increase in tax revenues, totaling 1,709.3 billion rupees, according to interim budget data. The budget’s current
Sri Lanka’s inflation is projected to remain below 3 percent through the first quarter of 2025, according to the Central Bank. This marks a breach of the lower threshold of the country’s 5 percent inflation target, which has been consistently maintained over the past several months. The Central Bank has proposed a 5 percent inflation
Top economist Dr. Anila Dias Bandaranaike has raised concerns over the viability of the low wages offered by Sri Lanka’s private sector, revealing that entry-level salaries for degree holders range from Rs.30,000 to Rs.40,000—barely enough to meet the minimum income required to stay above the poverty line. Speaking at a panel discussion hosted by the
Sri Lanka’s central bank has absorbed Rs. 546 billion of domestic money out of the Rs. 578.5 billion created from foreign exchange purchases in the six months leading up to June 2024, according to official data. The central bank generated Rs. 538.1 billion from forex purchases and an additional Rs. 40.4 billion net from buying
IMF Cautions on Global Growth Threats from Persistent Inflation The International Monetary Fund (IMF) has issued a warning that global growth is at risk due to elevated inflation, necessitating higher interest rates. The IMF has maintained its 2024 growth projection at 3.2 percent and slightly increased its 2025 growth forecast by 0.1 percent to 3.3
Sri Lankan Households Tackle Rising Expenses with Smart Financial Strategies As the cost of living continues to rise, Sri Lankan households are increasingly adopting savvy financial strategies to safeguard their budgets and maintain financial stability. From budgeting techniques to prioritizing essential expenditures, families are proactively navigating economic challenges by embracing practical solutions. The escalating cost