Economy

Sri Lanka asks debt moratorium from India: report

Monday February 10, 2020 9:04 am

ECONOMYNEXT – Sri Lanka’s Prime Minister Mahinda Rajapaksa has asked for three year debt moratorium from India, a media report said.

“This is something we discussed with the Indian government as well, and have asked if we could get a moratorium on all loan repayments for three years, until we can revive the economy,” Rajapaksa was quoted as saying in an interview with India’s The Hindu newspaper.

“If the Indian government takes this step, then other governments might agree to do the same thing, including China.

” The previous government took so many loans, they beggared the economy, and it is a mess. It all [now] depends on the stand India takes.”

Sri Lanka’s central government owed only 2.6 percent of its external debt to India, compared with 9.1 percent to China, according to an International Monetary Fund debt analysis in June 2019.

Several of Sri Lanka’s state enterprises also owes China. If SOEs are counted about 15 percent of the debt was owed to China.

Sri Lanka has not defaulted on its foreign debt in the past. But a moratorium was given unilaterally by some multi-lateral agencies after a tsunami hit the island in 2004.

Rajapaksa said Sri Lanka would pay the debt regardless.

“We have to do it, and we will manage somehow. We don’t want to default on our debt no matter what happens,” he said. (Colombo/Feb10/2020)

FILED UNDER: Sri Lanka external debt

Cancel reply

1 Sri Lanka's Port City duty free to have allowance of US$5000 a year

2 Sri Lanka rupee appreciation squeezes exporters

3 Sri Lanka to make state interventions on cement, steel, aluminum prices: Minister

4 Sri Lanka food security improves across all provinces by 40 percent: FAO, WFP

5 Sri Lanka's shares down on potential delays in DDR and DDO

Economy

Sri Lanka exports down in April, trade deficit up from March, rupee stronger

Thursday June 1, 2023 7:05 am

ECONOMYNEXT – Sri Lanka’s exports fell 12.6 percent from a year ago to 849 million US dollars in April 2023, amid weaker external demand, while imports were down 15.8 percent to 1,431 million Us dollars, central bank data showed.

Exports also fell 1,037 million dollars in March 2023, amid seasonal effects.

The trade deficit expanded to 583 million US dollars in April from 412 million US dollars in March 2023. Imports were at 1431 million US dollars in April from 1,450 million dollars in March.

Imports can pick as tourism, worker remittances and net inflows to government go up.

The rupee continued to appreciate.

“Exchange rate showed a notable appreciation during April 2023 with the continued improvement in liquidity in the domestic foreign exchange market, the discontinuation of the daily guidance on exchange rates,” the central bank said.

Up to April exports were down 9 percent to 3.8 billion rupees and imports were down 28 percent to 5.2 billion rupees and the trade deficit was 1.4 billion rupees.

Investment goods imports were down in April amid a contraction in credit.

“Almost all types of goods listed under the three main investment good categories, namely machinery and equipment, building material and transport equipment, recorded a decline,” the central bank said.

Economy

Sri Lanka President discusses debt restructure, program progress with IMF

Thursday June 1, 2023 6:14 am

ECONOMYNEXT – Sri Lanka’s President Ranil Wickremesinghe has discussed progress of International Monetary Fund program and debt restructuring during a visit of Deputy Managing Director Kenji Okamura, statement said.

“The discussion primarily focused on the progress of the IMF program between Sri Lanka and the IMF,” a statement from President’s office said.

“Attention was also paid to the on-going debt restructuring negotiations.”

State Minister of Finance Shehan Semasinghe, Senior Advisor to the President on National Security and Chief of Presidential Staff Sagala Ratnayake was also in the meeting.

Secretary of the Ministry of Finance Mahinda Siriwardena, Central Bank Governor Nandalal Weerasinghe, Deputy Director of the International Monetary Fund Anne Marie Gulde, and Resident Representative IMF in Sri Lanka Sarwat Jahan, attended this event. (Colombo/June01/2023)

Energy

Sri Lanka cuts petrol to Rs318 a litre, kerosene to Rs245

Wednesday May 31, 2023 10:29 pm

ECONOMYNEXT – Sri Lanka has cut petrol 92-Octane by 15 rupees to 318 rupees a litre and kerosene by 50 rupees to 245 rupees a litre from midnight May 31, the Ministry of Energy said.

Petrol 95 Octane will be raised by 20 rupees to 385 rupees, and Lanka Super Diesel 4 Star Euro 4 will be raised by 10 rupees to 340 rupees a litre.

Lanka Industrial Kerosene will be cut by 60 rupees a litre to 270 rupees.

Kerosene which is similar to jet fuel is usually the most expensive fuel in international markets followed by diesel and petrol is usually the cheapest.

Kerosene which is substantially cheaper than diesel is also used by buses to cut costs. (Colombo/May31/2023)