Economy: News & Insights

A Sri Lankan rupee note at an exchange counter in Colombo: The government is working on plans to restructure domestic public debt, amid difficult negotiations with global creditors.

Sri Lanka crisis

Sri Lankans fret over next piece of debt puzzle: domestic reform

Banks want clarity on 'voluntary' plans; global creditors expect burden-sharing

7 June 2023

Sri Lankan President Ranil Wickremesinghe speaks at Nikkei's Future of Asia conference in Tokyo on May 25. (Photo by Mayumi Tsumita)

The Future of Asia 2023

Sri Lanka will apply to join RCEP trade bloc, Wickremesinghe says

President says Asian countries resisting pressure to take sides between U.S., China

25 May 2023

A beach in Colombo in February 2023: Sri Lanka's tourism earnings during the January-March period crossed the $500 million mark for the first time since the pandemic.

Sri Lanka crisis

Sri Lanka tourism on comeback trail after bombings, COVID, unrest

Visitors return to broke Indian Ocean island but operators struggle with costs

13 May 2023

Although Sri Lanka still lacks the foreign currency it needs to buy crucial imports, President Ranil Wickremesinghe says there are signs the economy is improving.

Sri Lanka crisis

Japan and India to organize Sri Lanka creditors meeting

Successful resolution could serve as model for future debt restructuring

12 April 2023

Supporters of Sri Lankan President Ranil Wickremesinghe watch him speak in parliament at a party office in Colombo on March 22.

Sri Lanka crisis

Sri Lanka president declares 'new journey' as first IMF cash arrives

Wickremesinghe vows more reforms but experts wary of 'Band-Aid' fixes

22 March 2023

Sri Lankan President Ranil Wickremesinghe's office said the decision will enable the country to access up to $7 billion in funding overall.

Economy

IMF approves $3bn bailout for Sri Lanka

Program expected to improve country's standing in international capital markets

21 March 2023

Patients wait for doctors at a hospital during a general strike in Colombo on March 15. Many Sri Lankans hope that IMF approval will kick-start an economic recovery.

Sri Lanka crisis

Sri Lanka counts down to IMF bailout seen as 'just the beginning'

Tough reforms of state enterprises await after Monday decision on $2.9bn package

19 March 2023

A man carries a sack of vegetables at a main market in Colombo.

Sri Lanka crisis

China relents on Sri Lanka debt, paving way for bailout

Beijing eyes opportunity to extend clout over Global South

9 March 2023

Sri Lankan port workers protest against an income tax increase in Colombo on March 1, 2023. About a year after economic frustration ignited a popular uprising that forced a change of government, citizens are still feeling the strain.

Asia Insight

Sri Lanka says IMF aid in reach after year of anger, hunger and fear

President hints new China letter will seal deal; local elections in focus

7 March 2023

Villagers help design the layout for a ChildFund community kitchen in Saliya, Sri Lanka, in July 2022. (Handout photo from ChildFund International)

Opinion

Sri Lanka shows benefits of community-focused crisis support

Village hubs help feed hungry children and build resilience for future

22 February 2023

Laborers carry sacks of flour in the main market of Colombo in November. Sri Lanka is seeking to finalize a $2.9 billion bailout from the IMF.

Sri Lanka crisis

IMF confirms India assurances on Sri Lanka debt needed for bailout

Fund 'engaged' with other creditors for similar pledge as all eyes turn to China

24 January 2023

South Korea, China and Japan all saw drops in their foreign exchange reserves last year as the dollar strengthened.

Currencies

Global foreign reserves dwindle as countries counter dollar's rise

Japan's holdings sink 13%, sharpest on record; China falls short of IMF benchmark

12 January 2023

Reserve Bank of India Gov. Shaktikanta Das speaks at an IMF event on Jan. 6, in this screenshot captured from the IMF's livestream.

Economy

RBI chief's South Asia prescriptions: productivity, energy security

At IMF event, Shaktikanta Das lists priorities for stable growth in troubled region

6 January 2023

A food vendor at Galle Face Green in Colombo: Sri Lanka needs to unlock $2.9 billion in funding from the International Monetary Fund, as a first step toward climbing out of bankruptcy.

Sri Lanka crisis

Bankrupt Sri Lanka holds breath for Paris Club's China overture

Five things to know about wealthy group's role in Colombo debt relief

16 December 2022

Nandalal Weerasinghe, governor of the Central Bank of Sri Lanka, speaks at a news conference. He said in an interview that until IMF funding starts flowing, "we will not get any external financing from anyone."

Sri Lanka crisis

Sri Lanka to build foreign reserves after IMF rescue: central banker

Weerasinghe says talks with creditors like China are going well, may drag into 2023

30 November 2022

Workers transport sacks of rice at a marketplace in Colombo on Nov. 14, as the government aims to guide the country out of its economic crisis.

Sri Lanka crisis

Sri Lanka budget designed to impress IMF earns mixed grades

Experts say package meets some aims but question spending, including defense

17 November 2022

Sri Lanka's Foreign Minister Ali Sabry says the country's bilateral lenders are "aware" of the urgency for debt restructuring.

Interview

Sri Lanka working flat out for China, Japan, India debt deals

Foreign minister says 'we cannot force anyone' as IMF bailout hangs in balance

5 November 2022

A laborer pulls a car loaded with sacks of lentils at a grain market in Ahmedabad. The government has said the country's low rank on an index of global hunger is intended to "taint India's image."

Economy

India gets mixed marks on poverty, with hunger rank behind Pakistan

New Delhi slams 'misinformation' as other study hails 140m saved from destitution

30 October 2022

A Sri Lankan farmer gestures to show the ideal height of the plants in his paddy in July, as growers struggle amid the economic crisis and the aftermath of a ban on chemical fertilizers.

Sri Lanka crisis

Sri Lanka aims for food security after ill-fated fertilizer ban

As millions suffer from hunger, officials promise 'gigantic' farm modernization

24 October 2022

Drivers push auto rickshaws in a line to buy fuel in Colombo in late July, during the country's economic crisis. The government has said it aims to finalize a $2.9 billion IMF bailout by December.

Sri Lanka crisis

Sri Lanka eyes December bailout, IMF says timing hard to predict

Colombo seeks one-stop shop for talks with creditors like China, India, Japan

29 September 2022

U.S. Treasury Secretary Janet Yellen has told Sri Lanka that Washington will support its debt restructuring effort.

Sri Lanka crisis

U.S. backs Sri Lanka's debt restructuring effort: Yellen

Treasury chief calls for all creditors to cooperate

7 September 2022

Currencies

Superstrong dollar threatens debt crisis across emerging economies

Mexico pressured to follow Fed hikes, while Sri Lanka's repayment costs soar

2 September 2022

Sri Lanka, suffering under an economic crisis and skyrocketing inflation, has reached a staff-level agreement with the International Monetary Fund to obtain $2.9 billion.

Sri Lanka crisis

Sri Lanka to obtain $2.9bn from IMF, needs creditors to play ball

Final board approval still hinges on lender assurances and promised reforms

1 September 2022

A demonstrator waves a Sri Lankan flag earlier this year: After protests in the crisis-hit country brought down one president, his replacement appears close to securing IMF help.

Sri Lanka crisis

Sri Lanka makes late push for IMF bailout after unveiling budget

Lender to announce answer Thursday; experts deem president's plan 'positive'

31 August 2022

Sri Lankan President Ranil Wickremesinghe speaks to Nikkei Asia in Colombo on Aug. 23. (Photo by Ryosuke Hanada)

Interview

Sri Lanka president urges China to change tune on debt as IMF visits

In interview, Wickremesinghe says creditors 'must sing from same hymn sheet'

24 August 2022