Sri Lanka’s foreign-exchange reserves surged by an impressive 81% year-on-year in October 2024, reaching USD6.5 billion due to the support of its IMF program, according to Fitch Ratings. This boost in reserves is a significant development for the country’s economic stability, providing a stronger buffer against external shocks. However, Fitch notes that Sri Lanka’s improved…
By Prof. Samitha Hettige 2024 is special for Sri Lankans as they execute executive powers at two elections. First they elected a ‘Socialist President’. They are to elect a Parliament in few days & it’s the first since the 2021 economic crisis which some believe was worse than the 30 year conflict (valued approx 200…
By Dr Bilesha Weeraratne The recent presidential election in Sri Lanka marked a series of “firsts,” setting it apart from previous elections. It saw a record-low number of 350,516 valid voters per candidate, implementation of the Regulation of Election Expenditure Act of 2023, and a second count of votes. Notably, there was also greater engagement from…
How an Effective Procurement Policy Overhaul Could Rewrite the Nation’s Future and Transform the Nation’s Public and Private Sectors By Jithendra Antonio In a country where corruption has long infiltrated both public and private sectors, Sri Lanka approaches a critical juncture, where decisions today will echo for generations. Embedding a robust procurement system is more…
by Dhananath Fernando A fresh controversy has erupted following reports that Sri Lanka’s Central Bank (CBSL) injected nearly 100 billion rupees into the banking system by October 25. Given that money printing was the major cause of the country’s financial crisis, this news has sparked considerable attention. CBSL has defended its actions, arguing that these…
Efficient border agency operations are crucial for any economy, especially for island nations like Sri Lanka, where trade significantly contributes to economic growth. Delays in cargo clearance disrupt the flow of goods, increase costs, and undermine the country’s competitiveness in global trade. These delays impose substantial economic costs that adversely affect Sri Lanka’s GDP, leading…
President Sirisena told the Chartered Accountants that politicians (elected officials) will rob only if officials (appointed) support. Therefore, the process of appointed blocking the elected robbing & vice versa is necessary. It won’t be tough if existing laws aren’t averted at all times. The ‘buck’ may pass till 2030 general election unless the public reject…
The turn of the global interest-rate cycle, underlined by the US Federal Reserve’s 50bp Federal Funds target rate cut in September, should ease foreign-currency debt-repayment burdens and refinancing challenges for many emerging market (EM) issuers, says Fitch Ratings. Fitch expects the US rate-cutting cycle to be modest compared with historical cycles. However, we still expect…
By Jithendra Antonio Transforming Conflict into Opportunity for a Thriving Future In a world increasingly fragmented by geopolitical conflict, Sri Lanka has a remarkable opportunity to establish itself as a sanctuary for global talent and displaced professionals. Spanning over 65,000 square kilometers with a GDP of $74 billion at present, this island nation can strategically…
Fitch Ratings: The turn of the global monetary policy cycle this year, with rate cuts in the US, the eurozone and other major economies, has been a significant contributor to investor confidence and a fairly benign global macro and credit environment, Fitch Ratings says in the latest Risk Headquarters report. However, geopolitical and political risks,…
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