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Thursday June 20th, 2024

Sri Lanka brain drain: IMF hopes Sri Lankans who left during crisis will return

ECONOMYNEXT – The International Monetary Fund (IMF) hopes that Sri Lankans who emigrated due to its socioeconomic crisis situation will return to the country to help its growth potential, an IMF official said.

Commenting on concerns of brain drain as a result of a recent IMF-backed income tax hike, IMF Resident Representative in Sri Lanka Sarwat Jahan told a press briefing on Monday May 15 that, while brain drain has been a concern, the organisation is hopeful that some of the 300,000-plus people that emigrated from Sri Lanka last year will return.

“We hope that, with the proper macroeconomic policies, many who left the country will see again the potential of Sri Lanka and hopefully decide to come back to the country to help its growth potential,” she said.

Jahan was speaking at a press conference on the particulars of a four-day mission ahead of a review of Sri Lanka’s 17th IMF programme due in September. Accompanying her was IMF Asia and Pacific Department Director Krishna Srinivasan and  Senior Mission Chief for Sri Lanka, Asia and Pacific Department Peter Breuer, who said the international lender recognises that the reforms prescribed by the IMF are difficult.

Srinivasan said various stakeholder groups including trade union representatives the visiting officials met there is broad recognition among the different stakeholders that Sri Lanka has been through a crisis and ambitious reforms are necessary despite some differences of opinion.

These reforms include a hike in progressive personal income tax which has met some resistance from various quarters including a number of trade unions.

Related:

Stakeholders in Sri Lanka’s IMF programme recognise need for reform: top IMF official

(Colombo/May17/2023)

Comments (3)

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  1. Gamini says:

    He must be joking. Is he paid by someone underhand? Or is he completely this ignorant about the true situation of the country? They will never come back.

  2. Tommie says:

    Can gov tell stop the morning assembly in schools. Sun is like 48°c in the morning. Are they trying to kill children ?

  3. Lester says:

    They left because of Tamil terrorism, not bad economic policy. It will take time to recover.

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Comments (3)

Cancel reply

Your email address will not be published. Required fields are marked *

  1. Gamini says:

    He must be joking. Is he paid by someone underhand? Or is he completely this ignorant about the true situation of the country? They will never come back.

  2. Tommie says:

    Can gov tell stop the morning assembly in schools. Sun is like 48°c in the morning. Are they trying to kill children ?

  3. Lester says:

    They left because of Tamil terrorism, not bad economic policy. It will take time to recover.

Sri Lanka shares debt management experience at global forum

ECONOMYNEXT – Sri Lanka has shared its experiences at a forum on debt management to “provide lessons for others”, State Minister of Finance Shehan Semasinghe has said.

Semasinghe spoke on “The Role of Debt Management in Navigating Crises” at the 14th Debt Management Facility (DMF) Stakeholders’ Forum, in Livingstone, Zambia.

“I shared the experiences of Sri Lanka which can provide valuable lessons for others and explored the critical elements of capacity building and sound institutional practices in managing debt, particularly in the context of economic challenges,” Semasinghe said on X (twitter).

“Sri Lanka’s experience demonstrates that effective debt management is not just about managing numbers but also about building robust institutions and capacities.”

The journey underscores the importance of transparent, accountable governance and the need for international support and cooperation in times of crisis, he said.

“Sri Lanka prioritized addressing gaps in public debt management by drafting a consolidated Public Debt Management Act, ensuring clarity and legal robustness and establishing a centralized Public Debt Management Office with operational autonomy.

“The role of debt management in navigating crises is multifaceted and critical. Further, by investing in capacity building, adhering to sound institutional practices, and strategically managing debt restructuring and liability operations, countries can better withstand economic shocks and pave the way for sustainable recovery.”

Developing countries face severe debt distress as they are more vulnerable to external shocks, Semasinghe said, and “managing global debt requires coordinated international efforts on debt restructuring where necessary, timely fiscal policy adaptation and help sustainable economic growth.”

The state minister also pointed out the financial impact of climate change was an emerging challenge, as countries need investment to mitigate and adapt to climate impacts, “especially through non-debt creating inflows, which would require private capital mobilization.” (Colombo/Jun20/2024)

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Sri Lanka rupee closes stronger at 305.10/30 to US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed stronger ahead of the long weekend at 305.10/30 to the US dollar on Thursday, up from 305.40/55 to the US dollar Wednesday, dealers said, while some bond yields edged up.

A bond maturing on 15.12.2026 closed at 10.45/80 percent, up from 10.35/75 percent.

A bond maturing on 01.07.2028 closed at 11.20/45 percent.

A bond maturing on 15.09.2029 closed at 12.00/15 percent, up from 11.95/12.35 percent.

A bond maturing on 01.12.2031 closed at 12.05/25 percent.
(Colombo/Jun20/2024)

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Sri Lanka stocks close up, JKH trade pushes turnover

ECONOMYNEXT – The Colombo Stock Exchange closed up on Thursday, data on its site showed.

The broader All Share Index closed up 0.19 percent, or 23.11 points, at 12,249; while the more liquid S&P SL20 Index closed up 0.15 percent, or 5.33 points, at 3,610.

Turnover was 2 billion. Nearly half of this (Rs980mn) came from a crossing on John Keells Holdings Plc. The share closed down at 202.00.

“There were several crossings today which pushed turnover,” market participants said.

“Institutions and high net-worth activity drove the market, while the retail investors we feel are still about uncertain and adopting a wait-and-see approach.”

Melstacorp Plc was among the companies that saw active volumes (Rs194mn) in the day. The share closed up at 87.10.

Top contributors to the index included TeeJay Lanka Plc (up at 41.70), Sampath Bank Plc (up at 79.50), Hatton National Bank Plc (down at 201.00). Hayleys Plc (up at 105.00) and its subsidiary Hayleys Fabric Plc (up at 46.60) were also positive contributors. (Colombo/Jun20/2024)

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