By: Isuru Parakrama
Colombo (LNW): The Special Commodity Levy on imported potatoes has surged by Rs. 30 per kilo, the Finance Ministry said.
Accordingly, the revised Special Commodity Levy on imported potatoes will be Rs. 50 per kilo.
IMF Executive Board to decide on Sri Lanka’s US $ 2.9 billion EFF soon
The Executive Board of the International Monetary Fund (IMF) is set to decide on Sri Lanka’s Extended Fund Facility (EFF) at its meeting on 20 March.
IMF Managing Director Kristalina Georgieva had said that she looks forward to presenting for approval Sri Lanka’s IMF-supported program to the IMF Executive Board on March 20. She said the Extended Fund Facility will support the authorities’ program of ambitious reforms.
The Managing Director of the International Monetary Fund (IMF) has welcomed the progress made by the Sri Lankan authorities in taking decisive policy actions and obtaining financial assurances from all major creditors including China, India and the Paris Club.
The arrangement will support the authorities’ program of ambitious reforms, that they have already embarked upon, which will help Sri Lanka emerge from its current crisis and set it on a trajectory of strong and inclusive growth.”
While welcoming the progress made on debt restructuring, the European Union today said that reforms are essential to come out of the crisis stronger.
“As the EU States gave early financing assurances to the Sri Lanka Government, the Delegation of the European Union to Sri Lanka welcomes the progress made on debt restructuring.
Reforms are essential to come out of the crisis stronger. The EU will continue supporting Sri Lankans, including through renewed efforts on social protection,” the EU in Sri Lanka tweeted today
Sri Lanka has closed in on getting a sign-off on the long-awaited bailout package of USD 2.9 billion from the IMF upon receiving fresh financial assurances from China on restructuring the island’s debt.
Addressing the parliament yesterday morning, President Ranil Wickremesinghe said a letter of agreement, signed by him as the finance minister and the Central Bank Governor. Nandalal Weerasinghe, was forwarded to the IMF soon after receiving assurances from the Export-Import (EXIM) Bank of China.
However, the Deputy Ambassador of China to Sri Lanka, Hu Wei officially handed over the financial assurance letter issued by the EXIM Bank of China to Sri Lanka’s Finance Ministry Secretary, Mahinda Siriwardana yesterday at the Presidential Secretariat.
The envoy noted that large-scale Chinese companies are looking forward to visiting Sri Lanka in the near future to explore new investment opportunities.
The objectives of this IMF-supported program are to restore macroeconomic stability and debt sustainability, while safeguarding financial stability, protecting the vulnerable, and stepping up structural reforms to address corruption vulnerabilities and unlock Sri Lanka’s growth potential.
“This paves the way for consideration by the IMF’s Board on March 20 the approval of the Staff Level Agreement reached on September 1, 2022 for financing under an Extended Fund Facility,” Krishna Srinivasan, director of the IMF’s Asia and Pacific Department (APD) said in a statement.
The IMF says its board’s approval of a new loan for Sri Lanka would help catalyse financing from other creditors, including the World Bank and the Asian Development Bank.
“The arrangement will support the authorities’ program of ambitious reforms that they have already embarked upon, which will help Sri Lanka emerge from its current crisis and set it on a trajectory of strong and inclusive growth,” Srinivasan added.
MR’s overseas travel ban lifted
By: Isuru Parakrama
Colombo (LNW): The overseas travel ban imposed on former President Mahinda Rajapaksa was lifted from April 20 to April 30, 2023 as ordered by the Fort Magistrate Court.
The order was made as the Case on the assault on Galleface protesters was called in yesterday (08).
The lift has been approved as per a request made by the ex President’s lawyers for their client to leave for a summit in South Korea.
The overseas travel ban was imposed on Rajapaksa in connection with the assault on Galleface protesters last year.
Prices of sugar, lentils slashed
By: Isuru Parakrama
Colombo (LNW): The prices of sugar and lentils have slashed by Rs. 30 per kilo, revealed the Essential Food Importers’ Association.
The move is due to the recent Rupee appreciation, the Union said.
LKR reveals further appreciation against USD!
By: Isuru Parakrama
Colombo (LNW): The Sri Lanka Rupee has indicated further appreciation against the US Dollar, as per the foreign exchange rates released by Sri Lankan commercial banks this (09) morning.
The Bank of Ceylon (BOC) yesterday (07) marked the buy price Rs. 315 and the sell price Rs. 335, and today the value appreciated making the buy price Rs. 305 and the sell price, Rs. 325.
The Sampath Bank yesterday (07) marked the buy price Rs. 315 and the sell Rs. 330, and today, Rs. 308 and Rs. 323.
The Nations Trust Bank revealed yesterday that the buy price was Rs. 308 and the sell price, Rs. 330, and today, Rs. 305 and Rs. 327.
The NDB Bank, yesterday the buy price Rs. 305 and the sell price, Rs. 330, and today, Rs. 295 and Rs. 325.
Sri Lanka Original Narrative Summary: 09/03
- Central Bank says LKR appreciates further against the USD: buying at Rs.313.77 & selling at Rs.331.05: many analysts say the sudden appreciation of the LKR is puzzling and suspect a manipulation by certain authorities: inside sources say the IMF has used the LKR value as Rs.400 per USD in 2023 and Rs.500 per USD in 2024 in it’s Debt Sustainability analysis.
- Fitch says the LKR, which has become the world’s best performing currency so far this year, will decline and lose a fifth of its value against the dollar by end-2023: maintains its forecast for the LKR to weaken to a record low of Rs.390 per USD by year-end.
- Opposition leader Sajith Premadasa says SL must emulate New Zealand and Scotland in combating “period” poverty in women which remains a neglected issue in the country: tweets that male chauvinism and male-dominated political processes have prevented SL from taking progressive steps to address the problem.
- Sri Lanka United National Businesses Alliance Chairman Tanya Abesundara says the consumer market will shrink by 60% by April If the CB Governor is unable to prevent the contraction of the economy: asserts the consumer market had already shrunk by 40% last December and therefore the unemployment rate had increased while SMEs have been forced to close down.
- Elections Commission Chairman says steps are being taken to hold the postal voting for the Local Government polls from 28 to 31 March 2023.
- SJB General Secretary Ranjith Madduma Bandara says Opposition political parties will take legal action against Treasury Secretary Mahinda Siriwardana for his failure to attend a meeting with the Elections Commission: Siriwardana had stated he had another meeting to attend.
- Sri Lanka’s Official Reserve Assets increase by 4.5% to USD 2,217 mn in Feb’23 from USD 2,121 mn in Jan’23: the reserve assets were USD 1,917 mn in Mar’22, even while all external debts were being settled.
- CB data shows Fish production had fallen to a 12-year low in 2022, scarred by the inability to import sufficient quantities of kerosene and diesel as a result of the lack of Forex: total fish production was 397 mn kg last year, compared to 429 mn kg & 435 mn kg respectively during the Covid-19 impacted years of 2020 & 2021.
- Ports, Shipping and Aviation Minister Nimal Siripala de Silva says 17 ships that arrived at the Colombo Port were turned back due to the recent protest by the Port trade unions: also says he made a tremendous effort to bring them back but only a few came back.
- Mass media Minister & SLPP Economic Guru Dr Bandula Gunawardena says it is still unclear how official creditors including China, Japan and India, would restructure their loans to SL: explains some may agree to a haircut, others could give a debt moratorium, reduce interest rates or have a combination of these: asserts that’s yet to be worked out.
An announcement from Minister Kanchana about a change in the QR system
Energy Minister Kanchana Wijesekera says that the update of the QR quota will be done every week on Tuesday at midnight, effective from today (08).
Earlier, the QR quota was updated every week on Sunday midnight and to reduce the cost of distribution, Tuesday has been selected, the minister said in a tweet.
However, the minister has also stated that no change has been made in the amount of fuel received per week due to the QR quota.
Bread prices reduced!
The All Ceylon Bakeries Association says that the price of bread will be reduced from midnight today (08).
Accordingly, the price of 450-gram bread will be reduced by 10 rupees.
Chinese Exim Bank provides financial assurance to Sri Lanka through embassy handover
The Deputy Ambassador of the Chinese Embassy in Colombo Mr. Hu Wei officially presented the financial assurance letter issued by the Exim Bank of China to Mr. Mahinda Siriwardena, the Secretary of the Ministry of Finance at the Presidential Secretariat last afternoon (07).
Mr. Hu Wei revealed that large – scale Chinese companies are looking forward to visiting Sri Lanka in the near future to explore new investment opportunities.
Secretary to the President Mr. Saman Ekanayake was also present on this occasion.
IMF MD to submit SL economic reform program to executive board on March 20
The Managing Director of the International Monetary Fund (IMF) has welcomed the progress made by the Sri Lankan authorities in taking decisive policy actions and obtaining financial assurances from all major creditors including China, India and the Paris Club.
In a statement, Kristalina Georgieva said she looks forward to presenting the IMF-supported program to the organization’s Executive Board on March 20.
“The Extended Fund Facility (EFF) will support the authorities’ program of ambitious reforms, which will help Sri Lanka emerge from its current crisis and set it on a trajectory of strong and inclusive growth,” the IMF chief said further.
Sri Lanka is now closing in on getting a sign-off on the long-awaited bailout package of USD 2.9 billion from the IMF upon receiving fresh financial assurances from China on restructuring the island’s debt.
Addressing the parliament this morning, President Ranil Wickremesinghe said a letter of agreement, signed by him as the finance minister and the Central Bank Governor. Nandalal Weerasinghe, was forwarded to the IMF soon after receiving assurances from the Export-Import (EXIM) Bank of China last night.
However, the Deputy Ambassador of China to Sri Lanka, Hu Wei officially handed over the financial assurance letter issued by the EXIM Bank of China to Sri Lanka’s Finance Ministry Secretary, Mahinda Siriwardana this afternoon at the Presidential Secretariat.
The deputy Chinese ambassador noted that large-scale Chinese companies are looking forward to visiting Sri Lanka in the near future to explore new investment opportunities.
Sri Lanka’s International Monetary Fund program will be taken up by the International Monetary Fund’s Executive Board on March 20, 2023, after the China gave assurances to re-structure debt.
“Sri Lanka has now received financing assurances from all major bilateral creditors,” Krishna Srinivasan, Director of IMF’;s Asia and Pacific Department said in a statement.
“This paves the way for consideration by the IMF’s Board on March 20 the approval of the Staff Level Agreement reached on September 1, 2022 for financing under an Extended Fund Facility.”
Approval by the Board would also catalyze financing from other creditors, including the World Bank and the Asian Development Bank.
“The arrangement will support the authorities’ program of ambitious reforms, that they have already embarked upon, which will help Sri Lanka emerge from its current crisis and set it on a trajectory of strong and inclusive growth.”
The IMF has confirmed that Sri Lanka has now secured financial assurances from all major bilateral creditors, paving way for the IMF’s executive board to consider green-lighting the EFF for the island nation engulfed with its worst economic crisis since independence from Britain in 1948.
The IMF said its executive board will meet on March 20 to review a preliminary staff-level agreement first signed in September, offering a lifeline to the South Asian country with a 48-month arrangement under the EFF of about US$ 2.9 billion.
The announcement came days after the IMF praised Sri Lanka’s surprise decision on March 3 to raise interest rates and move toward a market-determined exchange rate as evidence of a commitment to reducing inflation and enacting reforms.