Skip to content
Search AI Powered

Latest Stories

Sri Lanka credit talks may lead to more funds

Last Wednesday's (29) in-principle deal comes about a month after Sri Lanka's pact with the ExportImport Bank of China covering about $4.2 billion (£3.3bn) of outstanding debt

Sri Lanka credit talks may lead to more funds

SRI LANKA’S pact with creditor nations to restructure its debt prepares the way for the International Monetary Fund (IMF) to consider clearing the first review of a bailout next month, the global lender said last Thursday (30).

Last Wednesday’s (29) in-principle deal comes about a month after Sri Lanka’s pact with the ExportImport Bank of China covering about $4.2 billion (£3.3bn) of outstanding debt, while clearing the IMF review could trigger a second tranche of about $334 million (£265m) in funds.


“This agreement serves as a key milestone in Sri Lanka’s ongoing endeavour to achieve public debt sustainability and to foster economic recovery,” said Sri Lanka’s treasury secretary Mahinda Siriwardana.

Sri Lanka and the IMF clinched the staff-level agreement on the first review of the four-year extended fund facility arrangement in October, after a month’s delay.

The second tranche will be disbursed once the IMF’s executive board clears the review.

“These understandings pave the way for the IMF executive board to consider completion of the first review,” Peter Breuer, the IMF’s mission chief for Sri Lanka, said in a statement.

“We look forward to the executive board taking up this review by mid-December and the continuation of our productive collaboration with Sri Lanka.”

Sri Lankan officials did not immediately respond to a request for comment on the IMF statement.

The finance ministry said the deal with the creditor panel covered about $5.9bn (£4.6bn) of outstanding public debt, consisting of a mix of long-term maturity extension and reduction in interest rates.

Japan, together with France and India, cochairs the committee of 15 nations. But Sri Lanka’s largest bilateral creditor, China, has not joined as a formal member.

“I expect this case will be applied as a leading case in dealing with debt problems in middle income nations,” said Japan’s top financial diplomat, Masato Kanda, describing the agreement as a “major achievement”.

Since locking down the IMF bailout of $2.9bn (£2.3bn) in March, Sri Lanka has managed to partly stabilise its economy, bring down runaway inflation and rebuild currency reserves.

Finance ministry data shows external debt of $36.6bn (£29bn) at the end of June. Once the debt restructuring is completed, Sri Lanka hopes to cut its overall debt by $16.9bn (£13.4bn).

After receiving the IMF money, Sri Lanka could get further funding from the Asian Development Bank and the World Bank, taking the total to about $900m (£714m), the central bank governor, P Nandalal Weerasinghe, said last week.

The finance ministry said it would next focus on striking similar deals with other bilateral creditors for debt amounting to $274m (£217m) and seek pacts with bondholders who have the bulk of its $12.5bn (£10bn) of international sovereign bonds.

A debt restructuring proposal by private creditors in October did not get a favourable response from the finance ministry, which said it had “serious reservations” about the proposed macro-linked bonds.

Kanda said negotiations were “on track” with bilateral creditors and they were working on details of a memorandum of understanding. He declined to comment on details such as the interest rates for the restructured debt, or the repayment period.

More For You

Essar-Oil-UK-Getty

Essar Oil UK is advancing decarbonization at its Stanlow Refinery with two key projects supported by Industrial Energy Transformation Fund (IETF) grants. (Photo: Getty Images)

Essar, 24 other firms get £51.9m to cut industrial carbon emissions

THE GOVERNMENT has allocated £51.9 million to support 25 businesses in reducing carbon emissions as part of the Plan for Change aimed at driving economic growth and rebuilding Britain.

The funding covers projects across various industries, including food manufacturing, cement production, and glass processing.
Companies receiving funding include Essar Oil UK, Nestlé's coffee processing site in Staffordshire, Heinz's baked bean factory in Wigan, and Hanson Cement in North Wales.

Keep ReadingShow less
Tesla-Getty

Tesla has faced challenges in 2024, reporting its first annual decline in deliveries as incentives failed to increase demand for its ageing vehicle lineup. (Photo: Getty Images)

Tesla received nearly £200m in UK government grants since 2016: Report

ELON MUSK’s electric vehicle company Tesla has received £191 million in grants from the UK government since 2016, according to an analysis by Tussell.

The majority of the funding, £188m, was provided by the Department for Transport (DfT) through the plug-in car grant scheme, which aimed to promote the adoption of electric and plug-in hybrid vehicles, The Guardian reported.

Keep ReadingShow less
CES-2025

CES 2025, organised by the Consumer Technology Association (CTA), will be held from 7 to 10 January.

Indian tech innovations to shine at CES 2025, says top executive

THE INDIAN technology sector continues to capture attention, with several startups and entrepreneurs showcasing their innovations at CES 2025, the world's largest tech event.

John Kelley, vice president and show director of CES, described the Indian tech story as “fascinating” and highlighted its growing global significance.

Keep ReadingShow less
Anil Agarwal acquires London's historic Riverside Studios

Anil Agarwal

Anil Agarwal acquires London's historic Riverside Studios

THE founder and chairman of Vedanta group Anil Agarwal is the new owner of the iconic Riverside Studio in London, a statement said on Wednesday (8).

The 100-year-old studio, which is a renowned global centre for arts and located on the north bank of the river Thames in the centre of London, will now operate under the name ‘Anil Agarwal Riverside Studios Trust’, it informed.

Keep ReadingShow less
india-gdp-iStock

India's GDP growth was 9.7 per cent in 2021-22, 7 per cent in 2022-23, and 8.2 per cent in 2023-24. )Representational image: iStock)

India's GDP growth projected to fall to 6.4 per cent in FY25

INDIA's gross domestic product (GDP) growth is projected to decline to 6.4 per cent in the financial year 2024-25, marking its lowest rate in four years, according to government data released on Tuesday. The slowdown is attributed to weaker performance in the manufacturing and services sectors.

The growth rate of 6.4 per cent, estimated by the national statistics office (NSO), is the lowest since the contraction of 5.8 per cent recorded during the Covid-19 pandemic in 2020-21. GDP growth was 9.7 per cent in 2021-22, 7 per cent in 2022-23, and 8.2 per cent in 2023-24.

Keep ReadingShow less