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
Sri Lanka’s cabinet of ministers has approved borrowing 100 million US dollars from the Asian Development Bank, according to a statement from the state information office. This loan is the first installment of a 300 million dollar program. Sri Lanka recently passed an Electricity Law, which is tied to budget support loans. These budget support
The International Monetary Fund (IMF) announced that it welcomes Sri Lanka’s finalization of debt restructuring agreements with major creditor nations, marking a significant step towards restoring debt sustainability. According to IMF’s Senior Mission Chief in Sri Lanka, Peter Breuer, the agreements reached with China and other creditor nations to restructure approximately $10 billion in bilateral
Sri Lanka agreed to a revised deal with the IMF that includes significant tax changes: These changes are expected to be approved by parliament by July 2024 and take effect in January 2025. Concerns and Context: This tax reform is part of Sri Lanka’s effort to address its economic challenges with the help of the
Sri Lanka’s State Minister for Finance, Shehan Semasinghe, expressed optimism on Twitter (platform Twitter) ahead of the International Monetary Fund (IMF) board discussion on the second review of the Extended Fund Facility (EFF) and Article IV consultation, taking place today, June 12th, 2024. “We remain optimistic that our international partners will continue to support Sri
Sri Lanka’s economic recovery faces a hurdle as a critical review by the International Monetary Fund (IMF) approaches. Verité Research, a prominent Sri Lankan think-tank, raises concerns about the country’s progress on governance reforms, a cornerstone of the IMF program. In a report titled “IMF Tracker,” Verité Research reveals that Sri Lanka has demonstrably failed
President Ranil Wickremesinghe, speaking at the Wandala Sri Visuddaramaya in Karawanella, stressed the critical importance of adhering to International Monetary Fund (IMF) agreements to secure the country’s economic stability. He emphasized the need for unity and support for the proposed Economic Transformation Bill during a recent event, warning that breaching these agreements would jeopardize Sri
The International Monetary Fund (IMF) has scheduled a review of Sri Lanka’s economic program for June 12th. This review will assess the country’s progress on reforms and economic policies. “The session will evaluate Sri Lanka’s economic policies and reform progress,” stated State Minister for Finance Shehan Semasinghe. “We look forward to the continued support of
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
Recent findings from the Institute for Health Policy (IHP) reveal a concerning trend in Sri Lanka’s consumer confidence, plummeting to its lowest levels since initiating the International Monetary Fund (IMF) program. According to data released on Friday, February 16, the Index of Consumer Sentiment (ICS) has dropped by 5 points to a mere 16 points