Sri Lanka’s official external reserves fell to US$ 2.36 billion by the end of January 2022 from US$ 3.14 billion by the end of December 2021, as the government settled foreign currency loans and funded essential imports, while taking receipt of a US$ 400 million currency swap and a US$ 500 million debt deferment from India. The January foreign reserves position merely provides 1.4 months of import cover. 
Sri Lanka has so far resisted assistance of International Monetary Fund (IMF) to bolster its reserves position and restructure its debt. Instated the government has placed its faith on a home-grown fix based on expedited bilateral and multilateral funding lines to overcome the economic difficulties.

Sri Lanka up to now has received US$ 900 million worth of financial assistance from India and is expecting further US$ 1 billion in March to facilitate essential imports such as food and medicines from that country. 

The government said it is discussing further credit lines from Pakistan, Japan and Australia.

In the three months from February to April, Sri Lanka has other US$ 1.83 billion foreign currency obligations to settle, while a billion dollar sovereign bond falls due on July 25. 

Excluding the July bond, Sri Lanka has another US$ 2.9billion worth foreign currency obligation in the eight months to December 2022, bringing the total up to US$ 6.9 billion for the entire year, including the interest. 

Out of the total debt due, the Central Bank said there is considerable amount which would be rolled over and hence wouldn’t result in fund outflows. 

The Central Bank led by Governor Ajith Nivard Cabraal, who is an accountant by profession, deals with the current foreign debt problem from the standpoint of cash flows and liquidity as opposed to absolute reserves in relation to the foreign currency debt due in the next 12 months.  

Independent research firm First Capital Research (FCR) estimates Sri Lanka could raise US$ 6.4 billion worth foreign currency loans from bilateral and multilateral sources in 2022, which could provide some cushion but wouldn’t end external sector pressures plaguing the country’s economy. 

FCR also estimates the inflows from tourism sector to recover to US$ 2.2 billion and remittance flows to reinstate this year. 

According to analysts, a steady remittance inflow will only takes place once Central Bank allows complete float of the currency.  

At present, a large section of remittances are being sent through unofficial channels due to the higher conversion rates offered in the north of Rs.240 to a dollar as opposed to Rs.210 offered by the formal banking channels. 

Meanwhile, despite an increasingly grim external outlook, Sri Lanka’s euro bonds have rallied in the past week on news that the government has sought technical support from the IMF, according to Tellimer Research.

09^th February 2022

AIESEC in University of Jayewardenepura successfully conducted JXLDS 10.0, the tenth iteration of its annual leadership development seminar, at Laya Leisure, Kukuleganga, on January 22 and 23.

The two-day conference, which is targeted for the entity’s membership and has helped bring forth leaders from within its ranks for a decade now, comprised various sessions conducted by the Executive Board of the entity and select external facilitators.

The event saw the delegates experience team-building activities, outbound training, informative sessions, and engage in several leadership-centric spaces over the two-day event schedule. Among the highlights of the event was the theme party conducted under the theme of the fictional land of Wakanda that allowed the membership a chance to express themselves through costumes, games, and an evening on the dance floor.

Notably, the conference was conducted in a group-wise bubble system from start to finish with strict adherence to safety guidelines in the backdrop of Covid cases once again rearing its head in the country. The delegates engaged in each session in their respective bubbles of six to seven members. Their overnight accommodation was also arranged in such a way that each delegate was allocated a room of their own for the night.

Several partners came on board to bring JXLDS 10.0 to fruition, including KL.LK, Fresh Milk Dairies, Haycarb PLC, Premier Partners Institute of Management, Singhagiri, Darley Butler & Co., Singha Holdings, Mark and Comm, and ORO International, along with several other banner and gift partners. 

Local Committee President of AIESEC in University of Sri Jayewardenepura, Vikum Wijekoon, said that the seminar has helped the youth of the entity identify their true capabilities for many years now and that it will continue to do so for years to come.

“JXLDS is a place for someone to see that they are so much capable than they believe they are. We are proud and delighted to see JXLDS held for its 10th year in grand style and hope to see the conference continue to bring forth young leaders in future,” he said.

The overwhelmingly positive feedback for the event from both the membership of AIESEC in University of Sri Jayewardenepura, as well as the external partners involved bears testament to the success of the event, which was conducted on an even grander scale than previous years in light of it being the 10th anniversary of JXLDS and its significance in shaping youth leaders.