An Echelon Media Company
Monday September 25th, 2023

Sri Lanka expects to wrap up staff-level agreement with IMF end-August: CBSL

ECONOMYNEXT  – Sri Lanka is expecting to wrap up a staff level agreement with the International Monetary Fund (IMF) when a team visits the country at the end of August, Central Bank Governor Nandalal Weerasinghe said.

“The IMF mission is coming to Sri Lanka by the end of the month with the intention of reaching  staff level agreement on the policy package.

“We are making good progress with the IMF mission and we’re hoping to reach staff level agreement,” Weerasinghe said at a monthly policy review meeting held on Thursday August 18.

“We have achieved our policy level targets so we hope to reach staff level agreement. This will certainly improve our situation,” he said.

At the moment, the Central Bank is in the process analysing its creditors before it reaches out to them.

“Once the staff level agreements with the IMF are concluded, the country hopes to reach out to its external creditors. Once the IMF agreements are in place, we will reach out to all our bilateral and commercial creditors,” he said.

Weerasinghe said a staff level agreement with the IMF will give the country a “clear picture on debt sustainability and debt targets for the country to  achieve in the next 10 years and an overall macro-fiscal programme.”

He said using these programmes endorsed by the IMF they will be able to reach out to the external creditors including first party commercial creditors and International Sovereign Bond (ISB) holders, the Paris club including Japan (which is a major partner of the Paris club) and non-Paris club creditors like China and India.

“All [creditors] will be officially approached and we will present our overall macro programme that has been endorsed by the IMF and also the debt targets we have to achieve going forward.

“So, with that information we will approach different groups and the process will commence from there with the assistance of France-based Lazard and Clifford Chance legal advisors as well as the other agents.”

Weerasinghe said the government is confident that debt can be made sustainable without restructuring domestic debt.

Related:

Sri Lanka debt can be made sustainable without re-structuring domestic borrowings: CB Governor

(Colombo/Aug18/2022)

Leave a Comment

Your email address will not be published.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

Leave a Comment

Leave a Comment

Cancel reply

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

Sri Lanka sells 2028 bonds at 14.52-pct

ECONOMYNEXT – Sri Lanka sold all offered bonds in 2026 and 2028 maturities raising 220 billion rupees from an auction Monday, data from the state debt office showed.

The debt office sold 135 billion rupees of 1 June 2026 bonds to yield 15.64 percent.

Another 85 billion rupees in 01 July 2028 bonds were sold to yield 14.52 percent.

The 2028 bond is offered on tap at the weighted average yield. (Colombo/Sept25/2023)

Continue Reading

Sri Lanka’s stocks end down on Monday after slow day of trading

ECONOMYNEXT – Sri Lanka shares were down at close of trading on Monday.

Turnover was 550 million rupees.

The main All Share Price Index was down 0.36 percent or 40.02 points to 11,216.50, while the S&P SL20 was down 0.44 percent or 14.07 points to 3,164.52.

Trading in the Capital Goods Industry (174,037,134) drove turnover.

Commercial Bank, Expolanka Holdings, and Aitken Spence plc saw losses, while National Development Bank, John Keells Holdings and Melstacorp saw gains in the day’s trading.

The market saw a net foreign inflow of 13 million rupees, while the yearly net foreign inflow was 429 million rupees. (Colombo/Sep25/2023)

Continue Reading

Sri Lanka rupee closes at 324.75/324.90 to the US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed at 324.75/90 to the US dollar on Monday, from Friday’s close at 324.70/325.00 dealers said.

Bond yields were up.

A bond maturing on 01.07.2025 closed up at 15.55/15.70 percent on Monday, after closing at 14.95/15.30 percent on Friday.

A bond maturing on 01.08.2026 closed up at 15.50/15.65 percent up from 14.95/15.10 percent.

A bond maturing on 15.09.2027 closed up at 14.75/15.50 percent from 14.55/15.00 percent.

A bond maturing on 01.05.2028 closed up at 14.25/14.60 from 14.00/14.30 percent.

A bond maturing on 15.05.2030 closed stable at 13.00/13.50.

A bond maturing on 01.07.2032 closed at 12.95/13.45 percent from 13.00/13.45 percent. (Colombo/Sept25/2023)

Continue Reading