Category: Economy

President calls for new economic model

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President calls for new economic model  (Financil Times 6th Aug) President Ranil Wickremesinghe yesterday declared that there can be no reliance on old economic models any longer and there should be innovative thinking, while paying prompt attention to the global changes.  The President made these remarks delivering the keynote address at the inauguration of the two-day “Let’s reset Sri Lanka” forum organised by the Advocata Institute.  President Wickremesinghe pointed out that whether the International Monetary Fund (IMF) proposal is good or bad, whether anyone likes it or not, it should…

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Sri Lanka private credit negative in June 2022, Rs 189 bn printed

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Sri Lanka private credit negative in June 2022, Rs 189bn printed ECONOMYNEXT – Sri Lanka’s credit from commercial banks to private borrowers fell 21 billion rupees in June 2022 with dollar denominated loans falling, while 189 billion rupees had been printed by the central bank official data showed, as forex shortages continued to persist. Credit to private sector from rupee banking units went by 16 billion rupees to 6,959 billion rupees, while dollar denominated loans fell from 794.6 billion rupees to 738.1 billion rupees. Sri Lanka is facing steep inflation…

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No new financing to Sri Lanka until macroeconomic policy framework is ready – WB

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No new financing to Sri Lanka until macroeconomic policy framework is ready – WB The World Bank Group says it is deeply concerned about the dire economic situation and its impact on the people of Sri Lanka. In a statement, the global financial institution said it is repurposing resources under existing loans in our portfolio to help alleviate severe shortages of essential items such as medicines, cooking gas, fertilizer, meals for school children and cash transfers for poor and vulnerable households. “To date, about US$160 million of these funds has been…

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Long-term investments in Sri Lanka are India’s plan to fix economic crisis, envoy Baglay says

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Long-term investments in Sri Lanka are India’s plan to fix economic crisis, envoy Baglay says. (NAYANIMA BASU 25 July, 2022 08:19 am IST (The Print)) High Commissioner of India to Sri Lanka Gopal Baglay added that New Delhi will also work with the island nation’s new govt to facilitate talks for a bailout package from the IMF. New Delhi: After helping Sri Lanka with an unprecedented assistance of around $4 billion since January as the country plunged into a deep economic crisis, India is now planning to invest heavily in newer…

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Ranil: Not the man to lead Sri Lanka out of the crisis

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Sri Lanka’s Ranil Wickremesinghe is a schemer and the West’s stooge. Not the man to lead it out of crisis Asian Angle by Kalinga Seneviratne (South China Post) Ranil Wickremesinghe, a five-time PM who has never completed a full term in office, only gained the presidency via horse-trading and with Western help He claims he can schmooze the IMF, but Sri Lanka would be better served if India and China stepped up and worked with Russia to craft a BRICS bailout Sri Lanka’s newly elected president Ranil Wickremesinghe addresses the media in…

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Burning Questions of the Sri Lankan People’s Movement: What is to be Done?

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(This article is based on a talk delivered at the online session organised by International Solidarity with the People’s Movement in Sri Lanka on a 23.07.2022) The people’s movement in Sri Lanka has entered into a deadlock with the ‘(s)election’ of Ranil Wickremesinghe as President. Within hours of him assuming office, a mid-night crackdown on the Galle Face protest camp was unleashed. Only cowards attack in the dead of the night as they have much to hide during the day. Despite brutal state repression, the people’s movement shows a resilient commitment to…

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SL will have to bite the bullet or go down abyss: Dr. Coomaraswamy

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Former Central Bank Chief forecasts crisis to force contraction of economy by 8-10% Reveals around 750,000 people have slipped into poverty Data suggests half the population could fall below poverty line by end-2022 Suggests Govt. to strengthen safety net by enhancing cash transfers going to poor and vulnerable Opines given toxic populist politics and entitlement culture, economic recovery will require painful treatment Predicts IMF conditions will be ‘onerous’ Opines Sri Lankans now recognise that sacrifice is necessary and inevitable Lists SOE reforms, divestment of State assets, independence of Central Bank…

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India’s geopolitical concerns over Port City Colombo

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India’s geopolitical concerns over Port City Colombo By Sunimalee Dias View(s): 611 India’s concerns over the Colombo Port City Project discouraging its business community from investing here is likely due to geopolitical issues and a lack of awareness of the regulations that are still being finalised, Sri Lankan authorities state. A recent report in the Indian media said there are concerns expressed over the Colombo Port City Project citing it’s a possible “hub for money laundering and extra- legal activities,” extended tax holidays, the Chinese involvement and as a result of…

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Some observations on Budget 2022

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Some observations on Budget 2022 Dissecting the mixed opinions on Budget 2022 By Sumudu Chamara – The Morning On 12 November, the Government presented what, in economic terms, can be referred to as a recovery Budget, in a context where the country has just started paying attention to and supporting the revival of sectors that did not receive adequate attention last year.  In other words, unlike in the pre-Covid-19 pandemic era, this Budget is expected to ease the economic burden on almost all segments of the society, not only a…

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Notes to the People: Should Sri Lanka Seek IMF Support?

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Notes to the People: Should Sri Lanka Seek IMF Support? By Sumanasiri Liyanage (Ceylon today 13-11-2021) The triple crises in Sri Lanka -the economic, the epidemiological, and the political- appear to be aggravating day by day. Although many countries suffered from a COVID-19 outbreak are slowly but gradually coming out of the economic crisis created by the pandemic, there are no signs of such a development in Sri Lanka.  The prices of all essential goods have rocketed. Farmers are still indecisive as to whether they cultivate or not for the…

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