Skip to content
Search

Latest Stories

Sri Lanka calls for diaspora investment

Sri Lanka calls for diaspora investment

SRI LANKA marked its Independence Day on Friday (4) with an appeal to its diaspora to send money home to overcome the island's worsening economic crisis and a pledge to protect foreign investments.

President Gotabaya Rajapaksa urged millions of Sri Lankans abroad to invest their savings in their home country, which is facing its worst debt crisis since independence from Britain 74 years ago.

"Expatriate Sri Lankans who provide foreign exchange to the country are a major resource to us," Rajapaksa said.

"I invite all expatriate Sri Lankans to invest in their homeland."

Colombo's foreign reserves, which stood at $7.5 billion (£5.53 bn) when Rajapaksa took office in November 2019, have fallen by more than half to $3.1 bn (£2.29 bn).

Worker remittances, Sri Lanka's number one foreign currency source, fell nearly 60 per cent in December. For 2021 as a whole, the figure dropped a record 22.7 per cent to $5.49 bn (£4.05 bn).

Tourism, another key source of income for the country, has been battered by the coronavirus pandemic.

The government imposed a broad import ban in March 2020 in a bid to save foreign currency, leading to shortages of food and fuel as well as raw materials needed for manufacturing and export-oriented industries.

Rajapaksa, who came to power two years ago pledging to "retake" all state enterprises either leased or partly sold to foreign companies by the previous administration, called for greater foreign involvement in Sri Lanka's economy.

"Foreign investment is especially important for large-scale projects, industries requiring modern technological know-how and new ventures that open up global market opportunities for us," he said.

He criticised "those who attempt to propagate incorrect public opinion against foreign investments, based on political motives".

His own coalition cabinet is divided on a move to sell a stake in a state electricity utility to a US company.

Faced with record inflation, falling reserves and warnings from international rating agencies about Sri Lanka's ability to service its $35 bn (£25.81 bn) external debt, Rajapaksa's finance minister brother Basil announced Wednesday (2) that he had sought technical advice from the International Monetary Fund.

The IMF responded by saying it was ready to discuss "options" if the government asked for financial support.

"While the IMF has not received a request for financial support from Sri Lanka, the staff stands ready to discuss options if requested," mission chief Masahiro Nozaki said in Washington.

In an address to the nation ahead of a military parade, Rajapaksa made no reference to seeking IMF help, but said he was focused on finding both short- and long-term solutions and called for an "optimistic approach".

(AFP)

More For You

Former Bristol MP Thangam Debbonaire enters House of Lords as Baroness

Thangam Debbonaire

Former Bristol MP Thangam Debbonaire enters House of Lords as Baroness

FORMER Bristol MP Thangam Debbonaire has taken her seat in the House of Lords after being awarded a life peerage last month.

The 58-year-old, who represented Bristol West for Labour from 2015 until July’s general election, wore the traditional scarlet robes during her introductory ceremony. She will now be known as Baroness Debbonaire of De Beauvoir Town in the London Borough of Hackney.

Keep ReadingShow less
Samir Shah: BBC must do more to reflect UK's diversity
Dr Samir Shah

Samir Shah: BBC must do more to reflect UK's diversity

BBC chairman Samir Shah insisted that the corporation must do much more to ensure its staff reflects the country as a whole, as it needs more 'variety and diversity'.

He added that diversity should not be limited to ethnicity, where progress has been made, but should also include diversity of thought, particularly by including more voices from the northern working class.

Keep ReadingShow less
starmer-zelensky

Keir Starmer welcomed Volodymyr Zelensky to Downing Street last week.

UK played a key role as Ukraine ready to accept ceasefire proposal: Report

THE UK played a key role in facilitating discussions between Ukraine and the US over a proposed ceasefire with Russia, according to a report.

Ukrainian president Volodymyr Zelensky has expressed readiness for a 30-day ceasefire but stated that it is up to the US to persuade Russia to agree. Talks on the proposal took place in Saudi Arabia.

Keep ReadingShow less
pakistan train siege reuters

A passenger, who was rescued from a train after separatist militants attacked it, receives medical aid at the Mach Railway Station in Mach, Balochistan, Pakistan, March 11, 2025. (Photo: Reuters)

Pakistan train siege: 155 hostages freed, 27 militants killed

PAKISTAN security forces launched a "full-scale" operation on Wednesday to rescue train passengers taken hostage by militants in the southwest, security sources said. Over the past 24 hours, 155 hostages have been freed.

The train, carrying more than 450 passengers, was seized at the entrance of a tunnel in a remote frontier district. An unknown number of hostages remain captive.

Keep ReadingShow less