In 2024, Sri Lanka saw improvements in its foreign financing situation, bolstered by increased foreign reserves and substantial international support from organizations such as the Asian Development Bank (ADB), the International Monetary Fund (IMF), and the World Bank.

By September 2024, Sri Lanka’s foreign exchange reserves had reached approximately $5.94 billion, enough to cover around four months of imports. 

This rise in reserves reflects positive shifts in the country’s external sector, which was aided by a reduction in the trade deficit, higher service account inflows, and increased remittances from workers abroad. 

Additionally, Gross Official Reserves grew by over $1 billion, reaching $5.4 billion by the end of May 2024. However, excluding currency swaps, usable reserves are lower, covering just over two months of imports, signaling vulnerability to external pressures if economic reforms falter.

A significant factor in stabilizing Sri Lanka’s economy has been international financial support. As of August 2024, the ADB disbursed $358.3 million to Sri Lanka, slightly exceeding the IMF’s $336 million in budget support loans. 

The IMF has also been crucial in helping Sri Lanka implement structural reforms aimed at restoring macroeconomic stability and ensuring debt sustainability.

Furthermore, the World Bank contributed $239.8 million in budget support loans, while Japan provided $20.1 million, including a grant of $1.3 million.

Despite these positive developments, Sri Lanka’s foreign financing faced challenges in the first quarter of 2024, when the country’s budget financing was negative due to debt repayments. 

Still, Sri Lanka’s overall foreign financing situation is improving, with the country entering 10 foreign financing agreements worth $398.7 million by August, primarily in loans. 

The total disbursements from January to August reached $1.01 billion, with 36% from the ADB, 33% from the IMF, and 24% from the World Bank. A large portion of these funds was allocated to budget support and key sectors such as energy, finance, and SME development.

Sri Lanka’s ongoing debt restructuring efforts have been critical, particularly negotiations with private creditors, who hold a significant portion of the country’s external debt. 

The IMF has emphasized that continued economic reforms are necessary to maintain financial stability.

 These reforms include increasing fiscal transparency, tackling corruption, and improving revenue collection. 

The IMF has noted some positive trends in Sri Lanka’s economy, including growth and lower inflation, while also highlighting the importance of social protection within the reform agenda.

The IMF’s Director for the Asia and Pacific Department, Krishna Srinivasan, has praised the Sri Lankan government for supporting the current reform agenda and noted that progress has been made in negotiations with official creditors.

The Ceylon Electricity Board (CEB) is making all necessary arrangements to cut electricity tariffs to help lessen the burden on consumers, particularly low- and middle-income families.

This would be the first tariff revision under the present government and is likely to be announced within weeks. This decision has been taken in response to public representations on the high cost of electricity.

The Energy Ministry and the CEB are jointly working on a proposal for the tariff reduction, assisted by representatives of the International Monetary Fund.

Early last week, on November 21, the IMF officials had consultations with officials from CEB and the ministry regarding the process. At the end of these consultations, a formal proposal is expected to be submitted to PUCSL, the Public Utilities Commission of Sri Lanka.

In October, the CEB had suggested a tariff reduction of 6.6 per cent, which PUCSL had rejected as inadequate.

The PUCSL has asked for a new recommendation, addressing its several objections including low fairness and transparency in calculations of the CEB.

It has ordered the CEB to provide printed bills to customers upon request and to conclude an agreement with the CPC on fuel procurement for generating power.

In spite of challenges like increased fuel prices and operational costs, the CEB has remained profitable to make these tariff reductions possible. Revenue for the CEB from sales of electricity rose 5.9% in 2024 to Rs. 314.4 billion, buoyed by increased demand.

Besides, direct generation cost fell by 32% on account of favourable weather conditions and decrease in coal prices. It accordingly translates into a gross profit of Rs. 99.7 billion in the first half of 2024 from losses the previous year.

While the improved financial position of the CEB justifies the tariff cuts, the challenge on its hands lies in striking a delicate balance between affordability and increased costs of energy generation.

The formula of the Electricity Tariff, under the purview of PUCSL, factored in the costs – fuel price, generation and distribution expenses. However, it complicates with the reliance on fossil fuels and volatile macroeconomic conditions.

The CEB’s ability to lower tariffs highlights its strong financial recovery, which should provide relief to consumers while ensuring the utility’s financial health. However, maintaining affordable tariffs in light of the country’s economic challenges will continue to be a delicate balancing act.

November 23, Colombo (LNW): The government has credited the Rs. 3,000 monthly allowance for individuals over 70 years of age enrolled in the “Aswesuma” welfare benefit program to their respective bank accounts.

According to the Government Information Department, the allowance for November is now accessible, and beneficiaries can withdraw the funds starting today (22).

This initiative supports 511,086 eligible individuals under the relief scheme, with a total of Rs. 1,533,258,000 allocated for distribution this month to ensure the welfare of senior citizens.

1. President Anura Kumara Dissanayake called upon all public officials to unite with a common purpose and work together to transform the motherland into a better nation. He made this statement during his visit to the Ministry of Defence at the Defence Headquarters premises in Akuregoda, where he assumed duties as the new Defence Minister
2. Sri Lankan banks’ operating environment (OE) assessment and overall credit profiles will be supported by any improvement in the sovereign’s credit profile (Long-Term Foreign-Currency IDR: RD, Long-Term Local-Currency IDR: CCC-) following a completed debt restructuring, says Fitch Ratings.
3. The Government of Sri Lanka says that discussions related to the third review under the Extended Fund Facility of the International Monetary Fund (IMF) program were successfully concluded. The meeting, held at the Presidential Secretariat, was attended by a delegation representing the IMF, led by Senior Mission Chief Peter Breuer.
4. Solo travellers are getting older and are increasingly drawn to Asian destinations – with Sri Lanka securing the most popular spot for 2025, says new data from Flash Pack. Flash Pack’s latest trends report reveals Sri Lanka has claimed the top spot for solo travel in 2025, advancing from fourth place in 2024.
5. A group of civil society activists today lodged a complaint with the Criminal Investigation Department (CID) against newly elected Jaffna District Independent MP Dr. Archchuna Ramanathan. The complaint was filed by the civil society activists requesting the CID to investigate certain controversial comments made by the parliamentarian in a video posted on the social media platform Facebook.
6. Former Minister Harin Fernando has stated that he does not believe the then-Cabinet of Ministers is responsible for the incident involving the procurement of substandard human immunoglobulin vials. He made these remarks while speaking to reporters as he arrived to provide a statement to the Criminal Investigation Department (CID) regarding the relevant incident.
7. A meeting took place this afternoon at the Presidential Secretariat in Colombo between the Secretary to the President Dr. Nandika Sanath Kumanayake and the Japanese Ambassador to Sri Lanka, Akio Isomata. The Japanese Ambassador extended his best wishes to the new government led by President Anura Kumara Dissanayake and expressed Japan’s commitment to continuing the bilateral relations between the two nations in a productive and sustainable manner
8. Opposition Leader Sajith Premadasa and key members of the Samagi Jana Balawegaya (SJB) met with representatives from the International Monetary Fund (IMF) today to discuss Sri Lanka’s economic recovery efforts. Discussions focused on transitioning the IMF agreement signed under the previous government into one more reflective of the democratic aspirations of the Sri Lankan people, Premadasa said. He noted that the nation is now governed under a fresh public mandate.
9. Professor Gomika Udugamasooriya has been appointed as the Senior Advisor to the President on Science and Technology. Prof. Udugamasooriya, who is affiliated with the University of Houston and the MD Anderson Cancer Research Center in the United States, received his appointment letter at the Presidential Secretariat from the Secretary to the President Dr. Nandaka Sanath Kumanayake.
10. The government announced that the Rs. 3,000 allowance designated for elderly individuals aged over 70, enrolled in the “Aswesuma” welfare benefit program, has been credited to their respective bank accounts.

November 23, Colombo (LNW): The Malwatte Chapter Chief Prelate, Most Ven. Thibbotuwawe Sri Siddhartha Sumangala Thera, called on the government to focus on fulfilling the public’s expectations, stating that addressing economic issues is the foundation for resolving other challenges.

The Chief Prelate shared these views during a meeting with Buddha Sasana, Religious and Cultural Affairs Minister Prof. Hiniduma Sunil Senevi and Deputy Minister Gamagedara Dissanayake at the Malwatte Maha Viharaya yesterday (22). The ministers visited the Malwatte Maha Viharaya after paying homage at the Sri Dalada Maligawa.

Minister Sunil Senevi highlighted the need to address the country’s cultural decline alongside the economic crisis. He emphasized the ministry’s pivotal role in influencing citizens’ lives and stressed the government’s responsibility to tackle these pressing issues.

The ministers also met the Deputy Chief Prelate of the Malwatte Chapter, Most Ven. Dimbulkumbure Wimaladhamma Thera, who underscored the importance of carefully considering actions and suggestions from various groups. Referring to a recent statement by the President, he reiterated the need for ministers to act within their authority and in line with public expectations.

The discussions reaffirmed the critical role of collaboration and thoughtful leadership in addressing Sri Lanka’s current challenges

November 23, Colombo (LNW): The Meteorology Department predicts showers or thundershowers in the Northern, North-Central, and Eastern provinces throughout the day. Other parts of the island are likely to experience similar conditions during the evening or night.

Heavy rainfall exceeding 100 mm is expected in certain areas of the Western, Sabaragamuwa, Central, and Southern provinces. Additionally, misty conditions are anticipated in the Western, Sabaragamuwa, Central, Uva, and Southern provinces during the morning.

The general public is advised to take necessary precautions to minimize the impact of temporary localized strong winds and lightning during thundershowers.

November 22, Colombo (LNW): During bilateral discussions at the Uga Bay Hotel in Pasikuda on Wednesday (20), Chinese Ambassador Qi Zhenhong met with S. Mangaraja, President of the Batticaloa Civil Society, to address pressing issues in the Eastern Province. Topics covered included fisheries, agriculture, tourism, education, health, livestock farming, vocational training, and uplifting the livelihoods of war-affected families and female-headed households.

Ambassador Qi highlighted China’s longstanding support to Sri Lanka, emphasizing initiatives under the Sri Lanka-China Friendship Association. He noted that China has provided significant assistance, including 1.5 billion rupees in grants, COVID-19 vaccines during the pandemic, scholarships for Eastern University undergraduates, and dry provisions during the economic crisis. Additionally, China has contributed to schoolchildren’s welfare by providing school uniforms across the island.

In recent contributions, the Ambassador mentioned that 12 million rupees and 8 million rupees were allocated to the Governor of the Eastern Province for developmental projects.

These discussions reflect the strengthening of ties between Sri Lanka and China, with a focus on addressing critical needs and fostering development in the Eastern Province.

November 22, Colombo (LNW): Sri Lanka’s Ambassador to the Kingdom of Saudi Arabia, Ameer Ajwad, met with Sara Al-Sayed, Deputy Minister of Investment for International Relations of Saudi Arabia and Deputy CEO of the Saudi Investment Promotion Authority (SIPA), to discuss investment opportunities in Sri Lanka. During the meeting, Ambassador Ajwad highlighted the potential for Saudi investors in Port City Colombo and other strategic sectors.

Ambassador Ajwad elaborated on lucrative investment opportunities available in agriculture, aquaculture, tourism, ICT, and the pharmaceutical sector. He extended an invitation for Saudi investors to explore these sectors for mutual benefit and emphasized Sri Lanka’s readiness to support foreign investments with favorable policies and incentives.

The Ambassador also presented detailed information on the Port City Colombo, a state-of-the-art multi-service special economic zone (SEZ) designed to leverage strategic international connectivity by land, sea, and air. The project offers cutting-edge infrastructure and a conducive environment for global investors.

Both parties agreed to continue discussions and identify actionable steps to enhance investment collaboration. This meeting follows the recent signing of a Memorandum of Understanding (MoU) between Sri Lanka and Saudi Arabia aimed at promoting direct investments and improving the investment environment in both countries through policy and legal reforms.

The Ambassador was accompanied by Mohamed Anas, Minister/Head of Chancery, and Tashma Vithanawasam, First Secretary (Trade) of the Sri Lankan Embassy in Riyadh.