Page 8 - Economic Crisis

'The ball is in Sri Lanka's court': China on debt restructuring request

China has said "the ball is in Sri Lanka's court" as it avoided giving a direct reply to the island nation's request of restructuring its debt, according to a media report. Sri Lankan has been urging China to restructure its debt as the nation continues to reel under an acute economic crisis. It is estimated that Sri Lanka owes debt payments of USD 1.5 to 2 billion this year to China. Overall China's loans and investments in Sri Lanka were estimated to be more than USD eight billion in the last few years. But Beijing has not made a public commitment for debt relief assistance to Sri Lanka so far. Quoting a Chinese embassy spokesman, the Daily Mirror news website on Saturday reported that Beijing had communicated to the Sri Lankan Finance Ministry three months ago about its readiness to discuss how to address the debt issue with the Chinese banks. China encouraged its banks to discuss it. The Chinese position was also communicated during the telephone conversation between Chinese .

Saudi Arabia announces investment of $1 bn in cash-strapped Pakistan

This announcement regarding the fresh investment comes days after the State Bank of Pakistan informed about USD 4bn in financing for Pakistan from friendly countries

WHO pledges to provide $4 mn worth of medical supplies to Sri Lanka

WHO Director-General also said that they have recognised the ongoing economic crisis in Sri Lanka and the impact Covid-19 was having on the health system

India urges citizens to examine relevant factors before visiting Sri Lanka

India on Thursday urged its nationals planning to visit Sri Lanka to exercise caution and especially called on them to consider factors like currency convertibility and the fuel situation in that country before undertaking any essential travel. Sri Lanka has been reeling under severe shortage of fuel and food in the last few months and the economic crisis has triggered massive protests in Colombo last month. India has extended assistance worth over USD 3.8 billion to Sri Lanka this year to help it deal with the economic crisis. "We have been following the developments there. Our understanding is that Indians are still the largest source of tourists for Sri Lanka," External Affairs Ministry Spokesperson Arindam Bagchi said. "As regards to the travel of Indians to Sri lanka in the current situation, let me emphasise that safety and well being of Indian nationals during their stay outside India including in Sri Lanka in this particular case, is always of prime interest to us," he ...

Sri Lankan President Wickremesinghe to present interim budget on Aug 30

Sri Lankan President Ranil Wickremesinghe who is also the finance minister will present an interim budget on August 30, seeking enhanced expenditure and borrowing limits for his cash-strapped government. The interim budget comes amidst the government's ongoing negotiations with the International Monetary Fund (IMF) for a possible bailout package. The Sri Lankan Parliament's communications office said President Wickremesinghe in his capacity as the finance minister will present the interim budget on August 30 and the lawmakers will debate the budget from Tuesday to Friday that week. The budget will seek an additional sum of LKR 929.4 billion to the originally approved figure of LKR 2,796.4 billion for 2021 as the increased government expenditure, it said. The budget will also seek an increase to the government's borrowing limit with an additional sum of LKR 892 billion -- up from the originally approved LKR 3,200 billion. Wickremesinghe has said he was keen to provide relief throug

Amid soft-peg crisis, Sri Lanka suspends imports of over 300 items from Wed

The list also included bags, bottle cases, jewellery boxes, powder-boxes, cutlery cases, toilet or facial tissue stock, towel or napkin stock

Lanka aims to lower fiscal deficit to 6.8% in budget 2023: Senior minister

Sri Lanka's 2023 budget would aim to reduce the fiscal deficit to 6.8 per cent in 2023 from the projected 9.9 per cent in 2022, a senior Cabinet Minister said on Tuesday, ahead of the visit by the IMF delegation for a bailout package to the crisis-hit island nation. Sri Lanka is in the midst of an unprecedented economic crisis that has led to severe shortages of fuel and other essentials, leading to long serpentine queues in front of filling stations. The island nation of 22 million also witnessed a significant political churn following massive mass protests that forced former president Gotabaya Rajapaksa to flee the country and resign from his post. "Sri Lanka is planning to cut the budget deficit to 6.8 per cent of gross domestic product in 2023 from an expected 9.9 per cent in 2022," Bandula Gunawardena, the Cabinet spokesman and Minister of Information said on Tuesday. The Cabinet of ministers has approved a fiscal framework for 2023-2025. Sri Lanka is facing the worst fiscal .

India hands over 21,000 tonnes of urea to economic crisis-hit Sri Lanka

India on Monday handed over 21,000 tonnes of fertiliser to Sri Lanka under a special support programme which will help farmers in this country and help bolster bilateral cooperation for food security, the second such assistance in recent months to the crisis-hit island nation. "Adding to the fragrance of friendship and cooperation. High Commissioner (Gopal Baglay) formally handed over 21,000 tonnes of fertiliser supplied under India's special support to the people of Sri Lanka," the Indian High Commission said in a tweet. This follows 44,000 tonnes supplied last month under Indian support totalling about USD 4bn in 2022," it said. "The fertiliser will contribute to food security and support the farmers of Sri Lanka. It demonstrates benefits to the people from close ties with #India and mutual trust and goodwill between #India and #lanka," the mission tweeted. In May, India assured Sri Lanka to immediately supply 65,000 metric tonnes of urea to avoid any disruption to the current Y

Crisis-hit Sri Lanka to ask Japan to open talks on debt restructuring

Economy may see recovery in the second half of 2023, says president

Amid political crisis, Gotabaya to return to Sri Lanka next week: Report

Sri Lanka has been facing its worst economic-political crisis, which led to massive protests in the country that forced Rajapaksa to flee abroad and also hand in his resignation last month

Gotabaya Rajapaksa to return to Sri Lanka on August 24, says his cousin

Gotabaya Rajapaksa will return to Sri Lanka on August 24, his cousin Udayanga Weeratunga said on Wednesday, over a month after the former president fled the country amid mass anti-government protests over an unprecedented economic crisis. Sri Lanka, a country of 22 million people, is grappling with its worst economic turmoil in seven decades, leaving millions struggling to buy food, medicine, fuel and other essentials. The massive protests that began in March culminated with Rajapaksa's resignation. "He talked to me on the phone, I can tell you he will return to the country next week, said Weeratunga, who was Sri Lanka's ambassador to Russia from 2006 to 2015. Rajapaksa could return on August 24, he said, adding that the ousted president should not be re-elected for political positions. But he can still do some service to the country as he had done previously, Weeratunga said of the 73-year-old former Sri Lankan president. Rajapaksa is currently staying at a hotel in Bangkok in th

Depriving girls of secondary education costs Afghan economy $500 mn: UNICEF

Keeping girls out of secondary school costs Afghanistan 2.5 per cent of its annual GDP, according to a new analysis by UNICEF

A year into Taliban 2.0's rule, what has changed for Afghanistan?

A year into the Taliban's rule over Afghanistan, the nation's economy, which was already suffering over the past few decades due to permanent war, has only worsened

IMF money to arrive in cash-starved Pakistan by August-end: Report

The IMF convened a meeting of its executive board on August 29 to approve a bailout package for cash-starved Pakistan, including disbursement of about $1.18 billion, a media report said

Ex-Sri Lankan Prez Gotabaya to stay temporarily in Thailand: PM Prayut

Thailand has agreed to allow Gotabaya Rajapaksa to stay in the country temporarily during which the ousted Sri Lankan president will search for a third nation that will offer him permanent refuge

Lankans bide time as new govt scrambles to find solutions for economic woes

Sri Lankans who have endured months of fuel and food shortages are bracing for more pain as a newly installed government scrambles to find solutions to the Indian Ocean nation's economic emergency

Property crisis threatens to drag down a third of China's steel industry

Almost a third of China's steel mills could go into bankruptcy in a squeeze that's likely to last five years

Gold stalls near three-week peak as traders eye fresh economic cues

(Reuters) - Gold steadied near a three-week peak on Monday, buoyed by a softer dollar, while investors strapped in for more economic readings that could determine the future pace of interest rate hikes.

Silly to compare Lanka's economic situation with India: Arvind Panagariya

Replying to a question on unemployment, Panagariya, a professor of economics at Columbia University asserted that India's problem is not unemployment; instead, it is under-employment

Lanka Prez urges parties to find ways to repay loan as IMF deal delayed

Sri Lanka's President Ranil Wickremesinghe said that the unrest had delayed a possible deal with the International Monetary Fund to help pull the bankrupt nation out of its economic crisis