Page 3 - Economic Crisis

Sri Lanka records single-digit inflation for 1st time since economic crisis

Cash-strapped Sri Lanka on Monday said that its inflation has dropped to 6.3 per cent, a single-digit figure for the first time in two years, providing much-needed relief to the people amidst the worst financial crisis. In a statement, the Census and Statistics Office of the Sri Lankan government said that the overall rate of inflation as measured by the Colombo Consumer Price Index on a year-on-year basis is 6.3 per cent in July 2023 and it was down from 12 per cent recorded in June this year. The overall rate of inflation as measured by the Colombo Consumer Price Index on a year-on-year basis is 6.3 per cent in July 2023. This was down from the 12 per cent recorded in June, the statement said. The last time single-digit inflation was recorded was 5.8 per cent in September of 2021. The highest inflation since the island nation's economy came under its worst crisis was 69.8 per cent recorded in September last year. The statement further said that the decrease in the cost of food ..

Macron becomes 1st French president to visit Sri Lanka, pledges assistance

During the visit, Wickremesinghe and Macron held friendly and productive bilateral discussions which lasted for an hour and fifteen minutes, the Sri Lankan President's office said

Support for Niger at risk as military takeover threatens stability: Blinken

Political instability in Niger resulting from a military takeover that deposed the president this week threatens the economic support provided by Washington to the African nation, US Secretary of State Anthony Blinken said on Saturday. Members of the Niger military announced on Wednesday they had deposed democratically elected President Mohamed Bazoum and on Friday named Gen. Abdourahmane Tchiani as the country's new leader, adding Niger to a growing list of military regimes in West Africa's Sahel region. Blinken, who is in Australia as part of a Pacific tour, said the continued security and economic arrangements that Niger has with the US hinged on the release of Bazoum and the immediate restoration of the democratic order in Niger. Our economic and security partnership with Niger which is significant, hundreds of millions of dollars depends on the continuation of the democratic governance and constitutional order that has been disrupted by the actions in the last few days, Blink

Expecting Sri Lankan prez's visit to impart momentum to bilateral ties: MEA

Sri Lankan President Ranil Wickremesinghe on Thursday kicked off a two-day visit to India that is expected to impart a new momentum in bilateral ties, especially in the economic and trade sphere. Prime Minister Narendra Modi and Wickremesinghe will hold wide-ranging talks on Friday covering all key aspects of relations between the two countries. It is the first visit to India by a Sri Lankan leader since the island nation reeled under a severe economic crises last year. "We Look forward to the visit to impart a new momentum to the relationship," External Affairs Ministry Spokesperson Arindam Bagchi said at his weekly media briefing. India extended financial assistance worth around USD 4 billion to Sri Lanka including lines of credit for purchases of food and fuel last year when it was hit by the economic crisis. New Delhi also provided guarantees to the International Monetary Fund (IMF) to help the country secure a USD 2.9 billion bailout package. In the evening, External Affairs

Pakistan facing 'exceptionally high' economic challenges, says IMF

The IMF assessment noted that Pakistan's economic challenges were complex and multifaceted, and risks were exceptionally high

Sri Lanka default: A bad bank would help the nation fix its finances

Before injecting fresh funds, the govt needs to take non-performing debt related to tourism, real estate and other troubled industries off banks' books

Debt-trapped Pakistan set to become fourth biggest IMF borrower: Report

Debt-trapped Pakistan will become the fourth largest IMF borrower in the world after receiving a fresh loan of USD 3 billion in the next nine months under the standby arrangement reached with the global lender. Pakistan, which is facing its worst economic crisis since independence from Britain in 1947, was on March 31, 2023, ranked fifth in the list of countries with the highest borrowing from the International Monetary Fund (IMF), The Express Tribune newspaper reported, citing the global lender's data. However, Pakistan will move to the fourth place in this list when it receives another USD 3 billion in the next nine months under the Stand-By Arrangement made with the Washington-based global lender on Thursday. The deal, which still needs to be approved by the IMF'S board, comes after an eight-month delay. Earlier, in terms of loans from the IMF, Argentina ranked first with USD 46 billion, Egypt stood in second place with USD 18 billion, Ukraine came in third with USD 12.2 billion

Pakistan clinches initial approval from IMF for $3 bn loan programme

The staff-level agreement is subject to approval by the IMF Executive Board, with its consideration expected by mid-July, the Washington-based lender said in a statement

Lankan parl to hold special session on Sat to discuss debt restructuring

It was earlier reported that Parliament would be convened on Saturday and Sunday to get the approval for the domestic debt restructuring process

Sri Lanka lifts import restrictions on 286 items as economic woes eases

Sri Lanka has lifted import restrictions on nearly 300 items with immediate effect, the Finance Ministry announced on Saturday, in a clear sign that the island nation is slowly but surely emerging from its worst economic crisis in decades. Last year, Sri Lanka plunged into its worst economic crisis since its independence in 1948 due to plummeting foreign exchange reserves that caused severe shortages of essential items and triggered massive public protests. In April 2022, Sri Lanka declared its international debt default due to the forex crisis. Sri Lanka's economic situation has improved after it secured a USD 3 billion bailout package from the International Monetary Fund (IMF) in March. The IMF lifeline helped Sri Lanka bolster its foreign exchange reserves and stabilise the spiralling inflation. With the economy stabilising, import restrictions on 286 items have been lifted from Friday midnight, the Finance Ministry said in a statement. Restrictions on 928 items will continue,

Amid economic crisis, Pakistan expresses interest in joining BRICS: Report

Amid a deepening economic crisis and stalled talks with International Monetary Fund to get loans, Pakistan has expressed its interest in joining the BRICS, Pakistan Today reported

Sri Lanka President urges party unity to handle economic crisis

President Ranil Wickremesinghe has called for joint action by all parties for Sri Lanka to emerge from the unprecedented economic crisis. Wickremesinghe, who made the remarks while addressing a legal conference held at the Central Resort of Nuwara Eliya on Friday, said that none of the political parties in Parliament currently possess a 50 per cent voter base. The economic challenges faced by the country ten months ago as an "unprecedented situation in history," Wickremesinghe, also the debt-ridden island nation's finance minister said. It has been 10-11 months since our country faced a state of failure. However, we have managed to establish law and order, political stability, and economic stability in our nation. Yet, we are aware that this stability is only temporary, and we still have a long road ahead to overcome the challenges we face, the president stressed. Therefore the need is for unity among the parties, not solely for the purpose of elections, but to steer the country ..

Sri Lanka economy shows 'tentative signs of improvement', says IMF

Sri Lanka's bankrupt economy has shown "tentative signs of improvement," a top IMF official has said, underlining that this reform momentum must continue under strong ownership by both the authorities and the Sri Lankan people. These remarks were made by International Monetary Fund Deputy Managing Director Kenji Okamura on Thursday at the end of his two-day official visit to the debt-trapped island nation. Sri Lanka's economy is showing tentative signs of improvement, in part due to the implementation of critical policy actions. But the economic recovery remains challenging. Now, more than ever, it is essential to continue the reform momentum under strong ownership by both the authorities and the Sri Lankan people, he said in a statement. Okamura's visit followed the approval on March 20, 2023, by the IMF Executive Board of 48-Month arrangements of about USD 3 billion under the Extended Fund Facility (EFF) with Sri Lanka. He said the current economic crisis has its genesis in polic

Pakistan's total population attains new mark amid economic slump: Report

"Punjab is the most populous province with its population crossing 127,474,000 (127.4 million). Sindh's population is over 57,931,000 (57.93 million)"

Pakistan receives 38% lower inflows in financing in 10 months: Report

Pakistan's external financing pipeline seems to be drying up as the country received 38 per cent lower inflows in the first 10 months of the current fiscal year, Dawn reported

Pakistan struggles to secure loans from global lenders, says report

The fall is attributed to non-renewal of the IMF programme. Because of the delay in finalising the deal with the global lender, Pakistan faced difficulties in obtaining international loan

IMF has no excuse to delay loan, Pak was not created to act like beggar: PM

PM Shehbaz referred to the terms of the global lender for seeking loan agreements and said that the government made every effort to meet them

India, Japan, France's common platform to aid Sri Lankan debt restructuring

India, Japan and France have announced a common platform for talks among creditors to address the debt restructuring programme of Sri Lanka which is grappling with its worst economic crisis. The representatives of the three creditor countries, including Finance Minister Nirmala Sitharaman, held a press briefing on the margins of the annual spring meetings of the World Bank and the International Monetary Fund (IMF) in Washington on Thursday. "The purpose of the event was to demonstrate the multilateral cooperation regarding the debt restructuring process among the creditors, together with Sri Lanka, said an official statement. Finance Minister Sitharaman expressed India's commitment to supporting Sri Lanka in dealing with its current economic crisis. She emphasised that collaboration among creditors was important to ensure transparency and equality in the debt restructuring discussions. Sri Lankan President Ranil Wickremesinghe joined the conference virtually. Japanese Finance Min

Pakistan says UAE assures $1 billion loan to help revive IMF deal

Pakistan is going through one of its biggest economic crisis ever as multiple delays in its loan program created a dollar shortage, import restrictions and reduced forex

China will support Sri Lanka's debt rework, says Central bank governor

The IMF on March 20 approved a $3 billion loan for the island nation to help bail it out of the worst economic crisis in decades