Skip to content
Search

Latest Stories

Sri Lanka IMF bailout review to be completed in early 2024

An IMF delegation will travel to Sri Lanka in March and the second review could be finalised about two months afterwards

Sri Lanka IMF bailout review to be completed in early 2024

THE second review of Sri Lanka’s $2.9 billion (£2.29bn) bailout with the International Monetary Fund (IMF) could be completed as early as the first half of 2024, provided it managed to meet the debt restructuring and revenue targets set under the programmed, an official said last Wednesday (13).

The IMF said its executive board cleared the first review of Sri Lanka’s bailout last Tuesday (12), providing about $337 million (£265m) in funds to help tackle the fallout from the country’s worst financial crisis in decades. The total amount sent so far to Sri Lanka now stands at about $670m (£528m), according to the IMF.


An IMF delegation will travel to Sri Lanka in March and the second review could be finalised about two months afterwards, Peter Breuer, senior mission chief for Sri Lanka, said at a briefing in Washington.

Sri Lanka will need to reach agreements with its official creditors which include China, Japan and India, as well as a resolution with external private creditors to restructure its foreign debt before finalising the review.

“We are projecting that next year there will be positive growth. So, I think there are signs that all these reforms are paying off, but clearly the economy is not yet out of the woods, a lot more reforms need to happen (and) sustaining this reform momentum is really key for the economy to emerge from the crisis,” Breuer said.

Sri Lanka’s economy, which began to stabilise after the bailout was secured in March, will contract by 3.6 per cent this year. The country is likely to grow by 1.8 per cent in 2024 as economic expansion gains pace, he added.

Sri Lanka needs to raise its tax revenue, reform loss-making state enterprises and build stronger reserves to stay on the IMF programme path.

China would not need to join the Official Creditor Committee (OCC), co-chaired by Japan and India, as the core part of the debt restructuring had been completed.

China is Sri Lanka’s largest bilateral creditor, and reached an agreement in principle to rework about $4.2bn (£3.3bn) of debt in October.

More For You

Shoplifting surge costs retailers record £2.2bn

In the 12 months to September 1, 2024, a total of 45,000 cases involving violence or abuse were recorded (Photo: iStock)

Shoplifting surge costs retailers record £2.2bn

SHOPLIFTING across the UK has spiked in recent months costing stores a record £2.2 billion ($2.7bn) in losses, a leading retail organisation warned.

"Retail crime is spiralling out of control," the British Retail Consortium said in its latest annual report, adding that thieves were also becoming more violent towards staff.

Keep ReadingShow less
Nirmala-Sitharaman-Getty

India's finance minister Nirmala Sitharaman will deliver the budget speech on Saturday. (Photo: Getty Images)

What to expect from India's budget

INDIAN prime minister Narendra Modi's government will present the annual budget on 1 February, with a focus on economic growth, job creation, and trade policies amid global uncertainties.

Finance minister Nirmala Sitharaman will deliver the budget speech.

Keep ReadingShow less
Ambanis-Getty

Billionaire businessman Mukesh Ambani with his wife and founder chairperson of the Reliance Foundation Nita Ambani during the wedding reception ceremony of actor Amir Khan's daughter, Ira Khan on January 13, 2024. (Photo: Getty Images)

Ambanis set to acquire minority stake in Hundred’s Oval Invincibles

THE OWNERS of the Indian Premier League (IPL) team Mumbai Indians have reportedly secured a deal to acquire a 49 per cent stake in Oval Invincibles, a franchise in England’s Hundred competition.

Reports on Thursday stated that Reliance Industries Limited (RIL), which owns Mumbai Indians, emerged as the successful bidder.

Keep ReadingShow less
Lupa Foods CEO hails royal warrant as a mark of trust

Manish Mandavia

Lupa Foods CEO hails royal warrant as a mark of trust

THE Asian CEO of a UK-based food company with a royal warrant described the accolade as a “great sign of confidence” in its values.

Lupa Foods first received the royal warrant from Queen Elizabeth in 2001.

Keep ReadingShow less
Labour announces pension reforms to rewire economy

Sir Keir Starmer and chancellor Rachel Reeves meet business leaders in central London on Tuesday (28)

Labour announces pension reforms to rewire economy

PRIME MINISTER Sir Keir Starmer and chancellor Rachel Reeves met business leaders on Tuesday (28) to announce pension sector reforms that they hope will boost economic growth and investment.

Starmer and Reeves held the meeting in London’s finance centre with leading chief executives including Lloyds Banking Group’s Charlie Nunn, BT’s Allison Kirkby, Tesco’s Ken Murphy and BAE Systems’ Charles Woodburn, the government said.

Keep ReadingShow less