Skip to content
Search

Latest Stories

Sri Lanka credit talks may lead to more funds

Last Wednesday's (29) in-principle deal comes about a month after Sri Lanka's pact with the ExportImport Bank of China covering about $4.2 billion (£3.3bn) of outstanding debt

Sri Lanka credit talks may lead to more funds

SRI LANKA’S pact with creditor nations to restructure its debt prepares the way for the International Monetary Fund (IMF) to consider clearing the first review of a bailout next month, the global lender said last Thursday (30).

Last Wednesday’s (29) in-principle deal comes about a month after Sri Lanka’s pact with the ExportImport Bank of China covering about $4.2 billion (£3.3bn) of outstanding debt, while clearing the IMF review could trigger a second tranche of about $334 million (£265m) in funds.


“This agreement serves as a key milestone in Sri Lanka’s ongoing endeavour to achieve public debt sustainability and to foster economic recovery,” said Sri Lanka’s treasury secretary Mahinda Siriwardana.

Sri Lanka and the IMF clinched the staff-level agreement on the first review of the four-year extended fund facility arrangement in October, after a month’s delay.

The second tranche will be disbursed once the IMF’s executive board clears the review.

“These understandings pave the way for the IMF executive board to consider completion of the first review,” Peter Breuer, the IMF’s mission chief for Sri Lanka, said in a statement.

“We look forward to the executive board taking up this review by mid-December and the continuation of our productive collaboration with Sri Lanka.”

Sri Lankan officials did not immediately respond to a request for comment on the IMF statement.

The finance ministry said the deal with the creditor panel covered about $5.9bn (£4.6bn) of outstanding public debt, consisting of a mix of long-term maturity extension and reduction in interest rates.

Japan, together with France and India, cochairs the committee of 15 nations. But Sri Lanka’s largest bilateral creditor, China, has not joined as a formal member.

“I expect this case will be applied as a leading case in dealing with debt problems in middle income nations,” said Japan’s top financial diplomat, Masato Kanda, describing the agreement as a “major achievement”.

Since locking down the IMF bailout of $2.9bn (£2.3bn) in March, Sri Lanka has managed to partly stabilise its economy, bring down runaway inflation and rebuild currency reserves.

Finance ministry data shows external debt of $36.6bn (£29bn) at the end of June. Once the debt restructuring is completed, Sri Lanka hopes to cut its overall debt by $16.9bn (£13.4bn).

After receiving the IMF money, Sri Lanka could get further funding from the Asian Development Bank and the World Bank, taking the total to about $900m (£714m), the central bank governor, P Nandalal Weerasinghe, said last week.

The finance ministry said it would next focus on striking similar deals with other bilateral creditors for debt amounting to $274m (£217m) and seek pacts with bondholders who have the bulk of its $12.5bn (£10bn) of international sovereign bonds.

A debt restructuring proposal by private creditors in October did not get a favourable response from the finance ministry, which said it had “serious reservations” about the proposed macro-linked bonds.

Kanda said negotiations were “on track” with bilateral creditors and they were working on details of a memorandum of understanding. He declined to comment on details such as the interest rates for the restructured debt, or the repayment period.

More For You

Satya Nadella backs £30bn Microsoft push in UK
Satya Nadella
Satya Nadella

Satya Nadella backs £30bn Microsoft push in UK

MICROSOFT CEO Satya Nadella on Wednesday (17) said the American tech giant is “doubling down” on its investments in Britain as US president Donald Trump began his state visit with the launch of a US-UK Tech Prosperity Deal.

The agreement focuses on advancing fast-growing technologies such as artificial intelligence (AI), quantum computing, and nuclear innovation.

Keep ReadingShow less
Jaguar Land Rover’s factory in Solihull, Britain

FILE PHOTO: A member of staff works on the production line at Jaguar Land Rover’s factory in Solihull, Britain. REUTERS/Phil Noble

Government steps in as JLR cyber attack stalls output

BRITAIN's largest carmaker, Jaguar Land Rover, said a pause in production due to a cyber attack would now stretch to September 24, extending the stoppage at its plants to more than three weeks.

The luxury carmaker, owned by India's Tata Motors, said it shut down its systems in early September to contain the hack that has severely disrupted its retail and manufacturing operations.

Keep ReadingShow less
UK–Africa business summit 2025

UK–Africa business summit 2025

UK–Africa business summit 2025 highlights trade, technology and resilient partnerships

Highlights:

  • Dr Sudhir Ruparelia emphasised Uganda’s growing real estate, agriculture and tourism sectors.
  • Lord Dolar Popat called for closer Commonwealth ties between Africa, the UK and India.
  • Uganda’s ministers outlined regional integration, investment climate and agricultural transformation.
  • Spiritual leader Sant Trilochan Darshan Das Ji urged ethical entrepreneurship rooted in integrity.

The 15th edition of the UK–Africa Business Summit took place on Friday, 12 September at The Royal Horseguards Hotel & One Whitehall Place, bringing together senior government leaders, entrepreneurs, investors and diaspora stakeholders to strengthen trade and investment ties between the UK and African nations.

Keep ReadingShow less
Modi & Trump

Donald Trump and Narendra Modi shake hands as they attend a joint press conference at the White House on February 13, 2025.

Reuters

India, US to discuss trade issues after tariff hike

INDIA and the United States will hold trade discussions in New Delhi on Tuesday, officials and Indian media reports said, as the two countries look to resolve a tariff dispute.

India currently faces high US tariffs on most of its exports and has not yet been able to reach a trade deal that would ease the pressure.

Keep ReadingShow less
Baiju Bhatt

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. (Photo: Getty Images)

Baiju Bhatt named among youngest billionaires in US by Forbes

INDIAN-AMERICAN entrepreneur Baiju Bhatt, co-founder of the commission-free trading platform Robinhood, has been named among the 10 youngest billionaires in the United States in the 2025 Forbes 400 list.

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. Forbes estimates his net worth at around USD 6–7 billion (£4.4–5.1 billion), primarily from his roughly 6 per cent ownership in Robinhood.

Keep ReadingShow less