Sri Lanka economic crisis

By prioritizing transparency, the Sri Lankan government aims to rebuild trust with international lenders and investors, a critical step in stabilizing the economy.

The two countries have agreed to promote investment in areas such as fisheries, food processing, tourism, and green energy.

The year was dominated by elections, and political and economic instability. Amid the bad news, India landed a spacecraft near the Moon’s south pole.

Examining Sri Lanka’s approach to fiscal targets and SOE reforms amid continued economic turbulence.

Last year’s economic crisis crippled the island nation, but it also provided India an opening to offset some of the inroads that China has made in Sri Lanka.

Since an economic crisis hit the country last year, New Delhi has reminded Colombo who its real friends are.

On the first anniversary of the people’s uprising, the spirit of dissent among Sri Lankan citizens remains strong. 

The 25-year contract with the petroleum giant is expected to ease the fuel shortage in the country.

The IMF’s $2.9 billion EFF program lays out major structural reforms required to restore long-term macroeconomic stability in Sri Lanka. 

The country has the dubious distinction of being the first Asian country to face scrutiny for corruption as part of a bailout program.

Sri Lanka hosted two high-level delegations from the U.S. in February – including one that opposition parties say was cover for a secret mission by the head of the CIA.

With Beijing extending debt restructuring assurances, the last obstacle in the way of Sri Lanka securing the bailout deal has been removed.

Beijing is resisting cuts to Sri Lanka's debts for fear other borrowers will want similar relief.

Government doctors, university teachers, and other workers from ports and the power and petroleum sectors are calling on the government to lower income taxes.

Colombo is still waiting on Beijing’s approval for debt restructuring.

Reducing allocation for defense will require retrenching soldiers. Cutting loose angry youth with weapons skills is not what the crisis-ridden island needs now.

The Wickremesinghe government plans to more than double tax revenue to be able to meet expenditure without having to print currency.

Sri Lanka is nearly bankrupt and has suspended repaying its $51 billion foreign debt, of which it must repay $28 billion by 2027.

Once again, the country is forced to seek a bailout from the IMF – with all the costs and benefits that entails.

The country has always has a sizable diaspora of migrant workers. But now many people are leaving not just to better themselves but out of sheer necessity.

The ADB cut its estimate for growth in Asia’s developing economies to 4.3 percent, down from an earlier forecast of 5.2 percent. But the slowdown is not evenly distributed.

The package is contingent on assurances from creditors, including China, India and Japan that debt sustainability will be restored.

The Yuan Wang 5’s docking at Hambantota Port continues to create ripples long after the ship left the island.

How did Sri Lanka’s economic crisis get so bad – and how can the country move forward from here?