Skip to content
Search

Latest Stories

IMF asks Sri Lanka to speed up debt restructuring

The new government secured a $2.9bn (£2.33bn) bailout from the IMF in March under a 48-month programme

IMF asks Sri Lanka to speed up debt restructuring

The International Monetary Fund asked Sri Lanka on Tuesday (23) to speed its debt restructuring and warned any delays could undermine efforts to overcome the country’s worst economic crisis.

Sri Lanka expected a quick deal with creditors shortly after defaulting on its $46 billion (£37.03bn) foreign debt in April last year, but restructuring talks began in earnest only last month.


The economic crisis led to severe shortages of food, fuel and medicines last year and triggered months of protests that led to the toppling of former president Gotabaya Rajapaksa in July.

The new government secured a $2.9bn (£2.33bn) bailout from the IMF in March under a 48-month programme that commits Colombo to painful reforms. Colombo has doubled taxes and announced it is selling off state enterprises to boost the balance sheet, but the IMF said more needed to be done.

“The mission discussed additional fiscal efforts that will be critical to ensure successful revenue mobilisation,” the IMF said at the end of a 12-day staff-level visit for talks with Colombo.

The IMF delegation said they expected more progress by the first formal review of the bailout programme in September. “Achieving timely restructuring agreements with creditors in line with the program targets by the time of the first review is essential to restoring debt sustainability.

“Keeping up the reform momentum and ensuring timely implementation of program commitments... are key for Sri Lanka to emerge from the economic crisis,” the IMF said in a statement.

Foreign debt restructuring was held up as the country’s main bilateral creditor, China, was initially reluctant to take a haircut and instead offered more loans to pay off old debts.

Just over $14bn (£11.27bn) of the total foreign credit is bilateral debt to foreign governments, 52 per cent of which is owed to China.

Beijing initially proposed a two-year moratorium on the repayment of its debts, but without accepting a reduction in the amount, an insufficient concession for the IMF.

Terms of China’s debt restructuring have not been made public. Beijing gave financial assurances in March allowing the IMF to release $330 million, the first tranche of the bailout package.

The IMF expects Colombo to restructure its domestic debt too. The government’s local debt was estimated at about 15,033 billion rupees ($50bn/£4.02bn) as of the end of last year.

Opposition parties have warned that any trim to the rupee debt could send the entire domestic financial system into a tailspin, but the Central Bank of Sri Lanka has said it will ensure the stability of commercial banks.

(AFP)

More For You

Sri Lanka forms committee to address UK sanctions
Anura Kumara Dissanayake

Sri Lanka forms committee to address UK sanctions

THE Sri Lanka government on Wednesday (2) formed a committee to recommend measures regarding the UK's decision to impose sanctions on three former military commanders who led the campaign that crushed the Liberation Tigers of Tamil Eelam (LTTE) in 2009.

Health minister Nalinda Jayatissa told reporters that foreign minister Vijitha Herath, justice minister Harshana Nanayakkara and deputy minister of defence Aruna Jayasekara would comprise the committee that would consult experts for the purpose.

Keep ReadingShow less
Gujarat-blast-ANI

The blast caused the factory’s concrete roof to collapse, scattering debris and body parts across the area, officials confirmed. (Photo: ANI)

ANI

Death toll rises to 21 in Gujarat firework factory explosion

AN EXPLOSION at an illegal firecracker factory in Gujarat's Deesa town killed 21 people and injured several others on Tuesday, officials said.

The blast caused the factory’s concrete roof to collapse, scattering debris and body parts across the area, officials confirmed.

Keep ReadingShow less
Child benefit payments set to rise for UK families

Child benefit, normally paid every four weeks directly into bank accounts, has undergone significant changes in recent months (Photo: Getty Images)

Child benefit payments set to rise for UK families

MILLIONS of British families are set to receive a financial boost as child benefit payments increase from April 7, according to HM Revenue and Customs (HMRC).

From next week, parents will receive £26.05 per week for the eldest or only child, amounting to £1,354.60 annually - up from the current rate of £25.60. For each additional child, payments will rise to £17.25 weekly, totalling £897 per year - an increase from the present £16.95 rate. This represents a 1.7 per cent increase across all payment categories.

Keep ReadingShow less
Anant Ambani Walks 140 Km in Spiritual Tribute on 30th Birthday

Anant’s padyatra is a reflection of the larger cultural fabric of India

Getty

Anant Ambani embarks on a 140-kilometer spiritual journey on foot to celebrate 30th birthday

Anant Ambani, a director of Reliance Industries Limited and a prominent figure in Indian industry, has chosen a unique and spiritual way to mark his 30th birthday. As part of his celebrations, he is currently undertaking a padyatra—a traditional pilgrimage on foot—from Jamnagar to Dwarka, covering a distance of approximately 140 kilometres. The journey reflects his devotion to Lord Dwarkadhish, the presiding deity of the Dwarkadhish Temple in the city of Dwarka.

Anant began his journey from his family’s residence in Moti Khavdi, Jamnagar, and has been progressing steadily for the past five days. Walking an estimated 10-12 kilometres each night, he travels under the protection of Z+ security and local police, ensuring his safety during this significant journey. The padyatra is expected to take between seven to nine days in total, with plans to conclude at the Dwarkadhish Temple in time for his birthday on April 10.

Keep ReadingShow less
New TB action plan proposed as cases surge

Government urged experts to come forward to help draw up a new five-year TB action plan. (Photo: Getty Images)

New TB action plan proposed as cases surge

BRITAIN on Wednesday (2) urged health experts and sufferers of tuberculosis (TB) to come forward to help draw up a new five-year action plan as it deals with record rises in the disease.

In 2023, England recorded its largest annual increase (11 per cent) in cases since enhanced surveillance began in 2000.

Keep ReadingShow less