Economics

Maldives Banking System Faces Excess Liquidity Crisis with 6.7 Billion Rufiyaa Amid Forex Shortages

A recent report highlights that the Maldives banking system is grappling with 6.7 billion rufiyaa in excess liquidity, a legacy of money printing during the Covid-19 pandemic. This surplus liquidity is now being converted into loans, which is putting pressure on the country’s currency peg. According to Edition.mv, an online news portal, the Maldives Monetary

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Economics

Fitch Downgrades Maldives Credit Rating to ‘CC’ Amid Falling Reserves and Rising Debt

Fitch Ratings has downgraded the Maldives’ credit rating from CCC+ to CC, citing a decline in foreign reserves and the upcoming repayment of foreign debt and sukuk bonds starting next year. As of July, the country’s gross foreign reserves had fallen to 395 million USD, down from 492 million USD earlier. Domestic reports highlight growing

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Economics

Sri Lanka’s Budget Deficit Plummets by 52% in First Half of 2024 as Tax Revenues Surge

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

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Economics

National Consumer Prices Rise Slightly to 2.5% in July; Central Bank Confident in Controlling Inflation

National consumer prices in Sri Lanka saw a slight increase in July, rising by 2.5% compared to the same month last year. This marks a modest uptick from the 2.4% increase observed in June, as the high base effects from the previous year began to dissipate. Despite this year-on-year rise, prices for many food and

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Economics

Sri Lanka Expected to Breach Inflation Target Until Q1 2025: Central Bank

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

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Economics

Sri Lanka’s Forex Reserves Slightly Decline to $5.649 Bn in July

Sri Lanka’s foreign exchange reserves experienced a marginal decline, reaching $5.649 billion in July 2024, down from $5.654 billion in June, according to official data. In June, the central bank sold approximately $57 million in the interbank market following a surge in liquidity from strong dollar purchases and an increase in private credit. Data for

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Economics

Central Bank Cuts Key Rates by 25bps to Stimulate Growth

The Central Bank has reduced its key policy rates by 25 basis points, bringing the Standing Lending and Deposit Facility rates to 9.25% and 8.25%, respectively. This adjustment, while largely symbolic, underscores the Bank’s commitment to an easing monetary policy. Since shifting to a more relaxed policy stance in June 2023, the Central Bank has

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Business

Central Bank Lowers SDFR and SLFR by 25 Basis Points

The Monetary Policy Board of the Central Bank of Sri Lanka has announced a reduction in both the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 25 basis points each. Effective July 22, 2024, the new rates are 8.25% for the SDFR and 9.25% for the SLFR. This decision follows

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Economics

Sri Lanka’s Private Sector Credit Grows by Rs.146 B

Sri Lanka’s credit to the private sector has expanded by Rs. 146 billion in the first half of 2024, with a notable increase of Rs. 74 billion in June alone, according to data from the Central Bank. This represents a 2% expansion in private credit for the first half of the year, which is lower

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Economics

Sri Lanka Central Bank Cuts Interest Rates to Boost Economy

The Monetary Policy Board of the Central Bank of Sri Lanka, at its meeting held on July 23, 2024, decided to reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) by 25 basis points (bps) to 8.25 percent and 9.25 percent, respectively. This decision followed a careful assessment of current

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