Economics

IMF Team to Visit Sri Lanka This Week for Key Discussions with President Dissanayake

A delegation from the International Monetary Fund (IMF) is set to visit Sri Lanka this week to meet with President Anura Kumara Dissanayake, a senior official announced. The team’s visit is described as a courtesy call, according to Anil Jayantha, head of the Economic Council of the President’s National People’s Power (NPP) party. In his

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International Economic Developments

US Supports Sri Lanka’s Path to Economic Sustainability Post-Crisis: Foreign Relations Chair

The United States has reaffirmed its support for the people of Sri Lanka in their efforts to build “an inclusive, just, democratic, and economically sustainable future,” according to Senator Ben Cardin, Chair of the Senate Foreign Relations Committee. This statement comes as Sri Lanka continues to recover from a devastating economic crisis in 2022, which

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Economics

IMF: Sri Lanka’s ISB Restructuring Deal Requires OCC Approval

The International Monetary Fund (IMF) has welcomed Sri Lanka’s recent agreement with international sovereign bondholders but emphasized that the deal still requires approval from the Official Creditor Committee (OCC) of bilateral lenders. “We welcome the agreement in principle between Sri Lanka and the representatives of international bondholders, pending confirmation on the comparability of treatment by

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Policy and Regulation

Sri Lanka’s Capital Market Awaits Policy Signals from President-Elect Dissanayake

Sri Lanka’s capital market is bracing for a cautious approach as it awaits President-elect Anura Kumara Dissanayake’s inaugural speech, with investors eager for insights into the future policy direction under his leadership. While a “wait-and-see” sentiment prevails, there is a hint of short-term optimism, as analysts believe Dissanayake’s leftist victory has already been factored into

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Finance

Sri Lanka Reaches ISB Restructuring Deal, Finalises Agreement with China Development Bank

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

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Economics

Sri Lanka Anticipates IMF Mission Visit in Two Weeks, Says President Wickremesinghe

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

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Economics

Sri Lanka’s IMF Program Yields Positive Results, Debt Sustainability Assessment Underway

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

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Tourism

Sri Lanka’s Tourism Income Surges to US$ 328 Million in July, Matching IMF Tranche

Sri Lanka’s tourism sector generated an impressive income of US$ 328.3 million in July 2024, a figure almost matching the country’s half-yearly tranche from the International Monetary Fund (IMF). This significant boost in tourism earnings, which more than doubled the June income of US$ 151.1 million, highlights the sector’s robust recovery following years of disruption

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Economics

Sri Lanka to Amend Controversial Strategic Development Projects Act by February 2025

Sri Lanka plans to amend its controversial Strategic Development Projects (SDP) Act by February 2025, according to Treasury Secretary Mahinda Siriwardana. The Act, which has been criticized for granting discretionary tax holidays and making top executives’ salaries tax-free, has drawn scrutiny from the International Monetary Fund (IMF) for exposing the country to potential corruption. In

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Economics

IMF’s Primary Deficit Focus Deepens Sri Lanka’s Debt Crisis: Analyst

The International Monetary Fund’s (IMF) stringent focus on an arbitrarily set primary balance target in Sri Lanka’s budget is exacerbating the country’s debt situation, warns an economic analyst. IMF Staff Mission Chief Peter Breuer emphasized the importance of achieving a 2.3 percent primary balance target of Gross Domestic Product (GDP) in his recent review statement.

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