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Wednesday October 14th, 2026

Venezuela money printing: hyperinflation hits children’s hospital

AFP – Eight-year-old Luisito is awaiting surgery for a brain tumor, a daunting prospect at the best of times — but this is Venezuela, and the hospital, typically, has little medicine or functioning equipment.

A four-month-old baby shares his nine square meter (96 square feet) hospital room. She suffers from an abnormally large head, or macrocephaly, and needs a drainage valve.

The hospital doesn’t have one.

The resulting fluid accumulation has left the baby girl’s head the size of a basketball.

Anthony, aged seven, also shares this tight space. Following surgery, the wound on his back worsened, for lack of clean dressings either at the hospital or in local pharmacies.

The litany of avoidable suffering is repeated from one ward to the next at the J.M. de los Rios Children’s Hospital in downtown Caracas. Venezuela’s Pharmaceutical Federation says just 20 percent of the drugs and medical equipment needed in hospitals and pharmacies across the oil-rich state are available.

Chronic shortages of medicines as well as basic foodstuffs have been a wearying consequence of Venezuela’s crippling years-long economic crisis, blamed by the international community on President Nicolas Maduro, who is seeking a second six-year term in elections on Sunday.

Medical materials can be bought over the internet, but in dollars only — a currency inaccessible for the grandmothers of these children from families of modest means.

"We don’t have dollars. We have our backs to the wall," said Maria Silva, watching over little Anthony and his spreading wound.

With better equipment, these cases could be easily treated, according to their doctor, Edgar Sotillo.

"We don’t have drugs…I have patients who are suffering from hydrocephalus (a build-up of fluid on the brain) and are waiting for a valve," said Sotillo.

"We are seeing cases of chickenpox, tuberculosis, malaria, scabies. Sometimes the hospital has no water. If patients contract infections, there are no antibiotics and their situation worsens," said the doctor.

– Brain tumor –

Blaming his country’s woes on an "economic war" being waged by the United States, the socialist Maduro has promised to fix the situation soon.

But Yuriangela, 16, has no time to wait. Suffering from lung cancer, she is waiting for her next round of chemotherapy.

Her mother, Sujer, weeps helplessly and does not know if she will be able to find the treatment her daughter needs. For chronic diseases such as cancer, nearly all — 95 percent — of the drugs needed for treatment are not available.

"She needs to have 17 chemo sessions," she said, adding that her family had to buy the medicine she needed abroad. "We don’t have the means, but we have received help."

Next door, four-year-old Luana cuts out the letters from a printed alphabet while waiting for treatment for a brain tumor.

"For two months, we have not been able to get chemotherapy. It is the responsibility of the people who govern, who only take any notice of us when we demonstrate," said her mother, Rosa.

Demonstrations to draw attention to the plight of the health service are frequent, whether by doctors, their patients with HIV, or the disabled.

– Rats and roaches –

On this cancer ward, devices for medical imaging like MRI machines and radiotherapy equipment are out of order.

"We cannot operate because of the lack of equipment," one woman doctor said, speaking on condition of anonymity.

"We have had patients whose conditions improved, but subsequently, for lack of medicine, they deteriorated and died."

From broken water pipes to a single functioning elevator and rats and cockroaches in the hallways, the J.M. de los Rios hospital has a long list of problems, doctors say.

Doctor Belen Arteaga, the head of the nephrology department, earns only the monthly minimum wage of 2.5 million bolivars — or $36 dollars at the official rate.

That’s enough to buy a kilogram of meat in Venezuela, where the IMF predicts inflation will soar to new heights of more than 13,000 percent this year.

For want of antibiotics, Arteaga said she saw four children die at the hospital. Infant mortality jumped more than 30 percent in 2016 compared to 2015, the most recent official figures show.

"The doctors are leaving," Arteaga added. According to the Venezuelan Medical Society, one-third have already emigrated.

"We are witnessing a humanitarian crisis," said Huniades Urbina, head of the childcare and pediatrics society.

"These are figures from sub-Saharan Africa."

Global borrowing costs rise as bond yields increase: Fitch

Fitch Ratings-London: The recent sharp and widespread increase in government bond yields represents a significant increase in real global borrowing costs.

Bond yields have risen to multi-decade highs in the US, Germany, UK and Japan in recent weeks, as highlighted in Fitch Ratings’ latest Economic Monitor chart pack.

Ten-year government bond yields have risen in major global markets since the previous Fitch-20 Economic Monitor in June. US yields averaged 4.99% in September, up from 4.47% in June; 3.50% from 3.00% in Germany;
5.46% from 5.06% in the UK; and 2.99% from 2.65% in Japan. In Korea there also was a marked increase, with yields averaging 4.45% from 4.18% in June.

The chart pack highlights another notable development: the pick-up in world trade growth, driven by an IT investment boom that has boosted capital goods imports in the US. Trade growth has surged in several countries, including Mexico, Korea, Canada and Indonesia.

The quarterly ‘Fitch-20 Economic Monitor’ (formerly ‘20/20 Vision’) chart pack covers the 20 major economies (the Fitch-20) that are the focus of Fitch’s Economics team’s global macro analysis, and plots five years of high-frequency economic data for 20 variables, with consistent coverage across each country.

‘Fitch-20 Economic Monitor: September 2026’ is available by clicking the link above or at www.fitchratings.com.

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Sri Lanka to get $100mn ADB loan to strengthen skills training

ECONOMYNEXT – Sri Lanka’s cabinet has approved obtaining a 100 million dollar results-based loan from the Asian Development Bank (ADB) to implement a Skills Development System Transformation Programme aimed at strengthening the country’s technical and vocational education and training (TVET) sector.

“The financing package comprises 50 million dollars in regular ordinary capital resources and 50 million dollars in concessional ordinary capital resources,” minister Nalinda Jayatissa said.

The funds are intended to support sector reforms and the development of a more effective skills development system aligned with labour market needs, he claimed. (Colombo/Oct14/2026)

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Fitch rates Sri Lanka Sampath Bank’s Rs10bn debenture issue A(lka)

Fitch Ratings – Singapore: Fitch Ratings has assigned Sampath Bank PLC’s (AA-(lka)/Stable) proposed Sri Lankan rupee-denominated Basel III-compliant subordinated debentures of up to LKR10 billion a final National Long-Term Rating of ‘A(lka)’.

The proposed debentures, which will mature in five and seven years, will be listed on the Colombo Stock Exchange. The bank plans to use the proceeds to supplement its Tier 2 capital base to maintain capital adequacy compliance as well as to support loan book growth.

The proposed debentures will qualify as Basel III-compliant regulatory Tier 2 capital. The debentures include a non-viability clause that states they will convert to ordinary voting shares upon the occurrence of a trigger event, as determined by the Governing Board of the Central Bank of Sri Lanka.

The final rating is the same as the expected rating assigned on 10 September 2026 and follows the receipt of documents conforming to information already received.

Key Rating Drivers

Fitch rates the proposed Basel III Tier 2 debentures two notches below the bank’s National Long-Term Rating of ‘AA-(lka)’. This reflects Fitch’s baseline notching for loss severity for this type of debt and our expectations of poor recoveries. There is no additional notching for non-performance risks, as the proposed debentures do not incorporate going-concern loss-absorption features.

Sampath’s National Long-Term Rating is used as the anchor rating for this instrument because the rating reflects the bank’s standalone financial strength and best indicates the risk of the bank becoming non-viable.

Fitch affirmed Sampath’s ratings on 17 August 2026. See our latest rating action commentary, Fitch Affirms Sampath Bank at ‘AA-(lka)’; Outlook Stable , for the key rating drivers and sensitivities.

Rating Sensitivities

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
A downgrade of the bank’s National Long-Term Rating will lead to a downgrade of the subordinated debt rating.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
An upgrade of the bank’s National Long-Term Rating will lead to an upgrade of the subordinated debt rating.

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Oman’s OQ Trading wins Sri Lanka LPG deal at Aramco price plus $133.93

ECONOMYNEXT – Sri Lanka’s cabinet has approved the proposal to award the contract for the supply of 420,000 metric tonnes (±20%) of Liquefied Petroleum Gas (LPG) to Oman’s OQ Trading Limited for a period of 12 months commencing 1 January 2027, minister Nalinda Jayatissa said.

The contract provides for the supply of 420,000 metric tonnes (±20%) of LPG, including a guaranteed minimum quantity of 336,000 metric tonnes, at a price of Saudi Aramco Contract Price plus US$133.93 per metric tonne on a Cost, Insurance and Freight (CIF) basis, Jayatissa said.

International competitive bids were invited for the procurement, and 4 bids were received.

“The contract was awarded to M/s OQ Trading Limited, the lowest substantially responsive bidder,” he told reporters. (Colombo/Oce14/2026)

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Sri Lanka stocks continue to slide, ASPI drops 0.14-pct

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange were trending down on Wednesday, nearing the psychological 20,000 mark, CSE data showed, with the benchmark All Share Price Index moving down 0.14 percent.

The ASPI was down 27.26 points at 20,050.22, while the more liquid S&P SL20 was down 0.02 percent, or 0.96 points, at 5,729.14.

Positive contributors to the ASPI were LOLC Holdings (up 3.08 percent at 418.00 rupees), Vallibel One (up 2.21 percent at 87.90 rupees), Asiri Hospital Holdings (up 4.98 percent at 25.30 rupees), Ambeon Holdings (up 3.45 percent at 33.00 rupees), and Haycarb (up 1.55 percent at 197.00 rupees).

Commercial Bank of Ceylon (down 0.25 percent at 198.00 rupees), SMB Finance (flat at 1.00 rupee), Hayleys (down 0.23 percent at 221.50 rupees), and Odel (down 7.41 percent at 10.00 rupees) were top negative contributors.

Market turnover was 318.20 million rupees. Retailing led turnover with 100.89 million rupees. (Colombo/Oct14/2026)

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Sri Lanka seeks to ease forex regulatory hurdles for electronics exporters

ECONOMYNEXT – Sri Lanka’s central bank and export board have met electronics exporters to discuss easing forex regulatory hurdles for the sector as the country targets 1 billion dollars in exports by 2028.

“To achieve this target, it is essential that Foreign Exchange Rules, regulations, Monitory and Fiscal Policies are export friendly,” the Export Development Board said.

Over 35 senior management representatives from the Electronic and Electrical sector participated in the seminar.

“The progarmme aimed to support the country’s Electronics and Electrical Sector by leveraging the expertise available within the Central Bank of Sri Lanka to share knowledge and to resolve issues in the areas of Foreign Exchange Rules, Inward and Outward Transactional Regulations, and Forex Repatriation Regulations.”

The industry, with over 100 companies and 37,000 employees, is the fifth largest merchandise export revenue earner of the country and earned 440 million dollars in 2025, the EDB said.

Central bank officials advised them on foreign exchange rules, transactional and working capital regulations, and forex repatriation regulations relevant to them.

“The event provided a platform for Electronics and Electrical Sector and Central Bank of Sri Lanka to connect, share knowledge, and discuss the Regulatory and Operational Issues Faced by Electronic and Electrical Manufacturing Companies and how to resolve them.” (Colombo/Oct14/2026)

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