Connect with us

News

IMF completes 3rd review of EFF programme ; approves $344 mn. for SL

Published

on

The International Monetary Fund (IMF) Executive Board has completed the third review of Sri Lanka’s 48-month Extended Fund Facility (EFF) arrangement, approving an immediate disbursement of approximately $334 million (SDR 254 million). 

This brings the total IMF financial support disbursed to Sri Lanka to about $1.34 billion (SDR 1.02 billion) under the $3 billion program.

The IMF commended Sri Lanka’s strong performance under the program, noting that all quantitative targets for end-December 2024 were met, except for the indicative target on social spending. Most structural benchmarks due by end-January 2025 were either met or implemented with delay. 

The recent successful completion of the bond exchange was highlighted as a major milestone in restoring debt sustainability.

Key highlights from the IMF statement:
– Economic Recovery: Sri Lanka’s economy has shown remarkable recovery, with growth averaging 4.3% since the third quarter of 2023. By end-2024, real GDP had recovered 40% of the losses incurred between 2018 and 2023.
– Inflation and Reserves: Inflation remains low, revenue collection is improving, and foreign reserves continue to accumulate.
– Reform Momentum: Sustaining the reform agenda is critical to ensure macroeconomic stability, debt sustainability, and long-term inclusive growth. The IMF emphasized that there is no room for policy errors.
– Revenue Mobilization: Strengthening tax compliance and avoiding tax exemptions are essential for fiscal sustainability and continued provision of essential services.
– Social Spending: Meeting social spending targets and reforming the social safety net are crucial to protect the poor and vulnerable.
– Debt Restructuring: Progress in debt restructuring, including the successful bond exchange, is a significant step towards restoring debt sustainability. Finalizing agreements with bilateral creditors remains a priority.
– Monetary Policy: Maintaining price stability, prohibiting monetary financing, and safeguarding Central Bank independence are key priorities.
– Structural Reforms: Addressing non-performing loans, improving governance in state-owned banks, and enhancing insolvency frameworks are vital for reviving credit growth and supporting economic recovery.

IMF Deputy Managing Director Kenji Okamura had stated :
“Reforms in Sri Lanka are bearing fruit, and the economic recovery has been remarkable. Sustaining the reform momentum is critical to ensure macroeconomic stability, debt sustainability, and promote long-term inclusive growth. There is no room for policy errors.”

The IMF’s continued support underscores the importance of Sri Lanka’s commitment to reforms as the country works towards lasting economic recovery and stability.

News

Fuel prices upped

Published

on

By

The Ceylon Petroleum Corporation (CPC) has announced a revision of fuel prices, effective from midnight today (June 30).

The price of Petrol 92 Octane has been increased by Rs. 12 to Rs. 305 per litre, while the price of Kerosene has been increased by Rs. 07 to Rs. 185 per litre. The price of Auto Diesel has also been increased by Rs. 15, bringing it to Rs. 289 per litre.

However, the prices of Petrol 95 Octane and Super Diesel remain unchanged, according to Ceypetco.

The new fuel prices are as follows:

• Petrol Octane 92 – Rs. 305 (increased by Rs. 12)
• Auto Diesel – Rs. 289 (increased by Rs. 15)
• Kerosene – Rs. 185 (increased by Rs. 7)
• Petrol Octane 95 – Rs. 341 (not revised)
• Super Diesel – Rs. 325 (not revised)

Meanwhile, Lanka IOC has also revised retail fuel prices to match Ceypetco prices.

Continue Reading

News

“Sri Lanka, only Asian country currently holding talks to revise Trumps’ tariffs”

Published

on

By

Sri Lanka is the only country in the Asia region currently holding discussions with officials in the United States to revise the tariffs introduced by US President Donald Trump earlier this year, according to Minister of Labour and Deputy Minister of Economic Development Prof. Anil Jayantha Fernando.

Joining the Parliamentary debate today (30), where MPs are debating the fiscal strategy statement of the government, the Deputy Minister of Economic Development stated that they are hopeful the government will be able get a better deal from the US regarding the 44% tariff imposed earlier this year.

A Sri Lankan delegation last month held discussions in Washington, D.C., focusing on tariff-related matters, following an invitation extended by the Office of the United States Trade Representative (USTR).

The reciprocal tariffs imposed by United States President Donald Trump has been paused for 90 days at present.

Deputy Minister of Economic Development Prof. Anil Jayantha Fernando in Parliament stated that the government will take all steps within their powers to reduce the tariffs imposed by the US which will have a major bearing on many local industries.

The Deputy Minister while the government is taking such important steps to safeguard local companies, the opposition is only focused on jeopardizing the work of the present administration

(adaderana.lk)

(Except for the headline, this story, originally published by adaderana.lk has not been edited by SLM staff)

Related News :

Continue Reading

News

Indian officials extend US visit to iron out trade deal, sources say

Published

on

By

Officials from India will extend their Washington visit to try to reach agreement on a trade deal with U.S. President Donald Trump’s administration and address lingering concerns on both sides, two Indian government sources said on Monday.

Trade talks between India and the U.S. have hit roadblocks over disagreements on import duties for auto components, steel, and farm goods, ahead of Trump’s July 9 deadline to impose reciprocal tariffs.

The Indian delegation had been expected to conclude discussions by last Friday, but was staying on until at least Monday evening to iron out differences and move towards an agreement, officials said, declining to be named as the discussions are private.

“There are certain disagreements over opening up the agriculture and dairy sectors, though India has offered tariff concessions on 90% of tariff lines. A final call will be taken by the political leadership of the two countries,” one of the government sources said.

“The Indian delegation could stay for another one to two days if discussions continue,” the second source said.

India’s commerce ministry and the U.S. Trade Representative Office did not immediately respond to requests for comment.

Agriculture and dairy are “big red lines” for India in its ongoing trade negotiations with the U.S., Finance Minister Nirmala Sitharaman told the Financial Express newspaper in an interview published on Monday.

“Yes, I’d love to have an agreement, a big, good, beautiful one; why not?” Sitharaman said, adding that an early conclusion of the trade deal would serve India better.

Trump said last week that America was going to have a “very big” trade deal with India, but gave no details.

(Reuters)

Continue Reading

Trending

Copyright © 2024 Sri Lanka Mirror. All Rights Reserved