• Latest
  • Trending
Colombo. Image credits - @tk.Shakir (Taikhoom ShakirHussain)

Reuters analysis on current Sri Lankan economic situation

August 4, 2021
Death toll from fatal train crash in India climbs over 230

Modi vows punishments over deadly Odisha crash

June 4, 2023
The people participating in the sex competition will engage in sex sessions which can go up to six hours daily

Sweden officially declares sex as sport, to organise European Sex Championship

June 4, 2023
Magnificent edifice for a new era  

Magnificent edifice for a new era  

June 4, 2023
Jayantha Dhanapala was a prime mover of nuclear disarmament

Jayantha Dhanapala was a prime mover of nuclear disarmament

June 4, 2023
Giant leatherback sea turtle washes up on Panadura beach

Giant leatherback sea turtle washes up on Panadura beach

June 3, 2023
Death toll from fatal train crash in India climbs over 230

Death toll from fatal train crash in India climbs over 230

June 3, 2023
Rain. Image credits - Max Bender @maxwbender / Unsplash

Southwest monsoon to gradually establish across Sri Lanka

June 3, 2023
Myanmar soldiers refusing to fight

Myanmar soldiers refusing to fight

June 3, 2023
Rahul Gandhi’s speech at Stanford University

Rahul Gandhi’s speech at Stanford University

June 3, 2023
Alien

Scientists expand search for signs of intelligent alien life

June 3, 2023
Imports. Image credits - Paul Teysen @hooverpaul55 / Unsplash

Import restrictions on nearly 400 items to be relaxed

June 2, 2023
Brazil former President Fernando Collor de Mello

Brazil’s former president sentenced to almost 9 years in prison for corruption

June 2, 2023
  • About Us
  • Advertisements
  • Privacy Policy
  • Contact
Sunday, June 4, 2023
No Result
View All Result
NewsIn.Asia
  • Home
  • Around South Asia
    • All
    • Afghanistan
    • Bangladesh
    • Bhutan
    • China
    • India
    • Maldives
    • Myanmar
    • Nepal
    • Pakistan
    • Sri Lanka
    Death toll from fatal train crash in India climbs over 230

    Modi vows punishments over deadly Odisha crash

    Magnificent edifice for a new era  

    Magnificent edifice for a new era  

    Jayantha Dhanapala was a prime mover of nuclear disarmament

    Jayantha Dhanapala was a prime mover of nuclear disarmament

    Giant leatherback sea turtle washes up on Panadura beach

    Giant leatherback sea turtle washes up on Panadura beach

    Death toll from fatal train crash in India climbs over 230

    Death toll from fatal train crash in India climbs over 230

    Rain. Image credits - Max Bender @maxwbender / Unsplash

    Southwest monsoon to gradually establish across Sri Lanka

    Myanmar soldiers refusing to fight

    Myanmar soldiers refusing to fight

    Rahul Gandhi’s speech at Stanford University

    Rahul Gandhi’s speech at Stanford University

    Imports. Image credits - Paul Teysen @hooverpaul55 / Unsplash

    Import restrictions on nearly 400 items to be relaxed

  • World
    • All
    • Japan
    • Russia
    • United Kingdom
    • United States
    The people participating in the sex competition will engage in sex sessions which can go up to six hours daily

    Sweden officially declares sex as sport, to organise European Sex Championship

    Rahul Gandhi’s speech at Stanford University

    Rahul Gandhi’s speech at Stanford University

    Alien

    Scientists expand search for signs of intelligent alien life

    Brazil former President Fernando Collor de Mello

    Brazil’s former president sentenced to almost 9 years in prison for corruption

    Fish. Image credits - Sebastian Pena Lambarri / Unsplash

    Fish moving to colder waters to survive

    Flight

    World’s best airline for 2023 named by AirlineRatings.com

    Mars

    Mars bar plastic wrapper swapped for paper

    Recep Tayyip Erdogan

    Erdogan wins Turkish election, extending rule to third decade

    Lankan President’s Japan visit will have a salutary effect on relationship

    Lankan President’s Japan visit will have a salutary effect on relationship

  • Business
  • Politics
  • Sports
  • Entertainment
    • All
    • Books
    • Gaming
    • Movie
    • Music
    • Series
    Samahan

    Amitabh Bachchan expresses confidence for Sri Lankan herbal drink Samahan

    ‘Money Back Guarantee’ to mark cinematic debut of cricketing legend Wasim Akram and wife Shaniera

    ‘Money Back Guarantee’ to mark cinematic debut of cricketing legend Wasim Akram and wife Shaniera

    The gran who couldn’t: Indu Balachandran’s latest book is for readers of all ages

    The gran who couldn’t: Indu Balachandran’s latest book is for readers of all ages

    The Weeknd

    The Weeknd is the world’s most popular artist, Guinness World Records says

    Naatu Naatu has millions of views on YouTube and is a viral sensation over social media

    Watch: Oscar winning song Naatu Naatu

    Naatu Naatu has millions of views on YouTube and is a viral sensation over social media

    Indian song ‘Naatu Naatu’ from ‘RRR’ wins Oscar award for best song

    Naatu Naatu has millions of views on YouTube and is a viral sensation over social media

    Naatu Naatu: The RRR song primed for Oscar history

    Keanu Reeves

    11 of the best films to watch in March

    Netflix. Image credits - Souvik Banerjee @rswebsols / Unsplash

    Netflix cuts prices for subscribers in more than 30 countries

  • Lifestyle
    • All
    • Fashion
    • Food
    • Health
    • Science
    • Travel
    Alien

    Scientists expand search for signs of intelligent alien life

    Fish. Image credits - Sebastian Pena Lambarri / Unsplash

    Fish moving to colder waters to survive

    Mars

    Mars bar plastic wrapper swapped for paper

    Emirates

    All Emirates passengers can now avail of free Wi-Fi connectivity onboard

    Exercise. Image credits - Victor Freitas @victorfreitas / Unsplash

    5 healthy habits that are easy to add to your day

    Global concern over babies born too soon

    Global concern over babies born too soon

    Nigerian chef Hilda Effiong Bassey

    Nigerian chef cooks for 100 hours in world record attempt

    Batik Air

    Batik Air reinstates daily services between Colombo and Kuala Lumpur

    Confucius tells us how to set ourselves free with ritual

    Confucius tells us how to set ourselves free with ritual

    Sri Lankans enjoy a walk in the beach

    My trip to Sri Lanka restored faith in fellow humans: Australian tourist

    Trending Tags

    • Golden Globes
    • Mr. Robot
    • MotoGP 2017
    • Climate Change
    • Flat Earth
  • Tech
    Whatsapp

    WhatsApp introduces new feature to edit sent messages

    WhatsApp

    WhatsApp will allow users to lock and hide conversations

    Whatsapp. Image credits - AARN GIRI / Unsplash

    WhatsApp announces multi-device feature to support more than one phone

    Apple store in Mumbai

    Apple says ‘Hello Mumbai’ at first India store launch

    WhatsApp

    WhatsApp to introduce five new features in 2023 

    OpenAI has created ChatGPT, a start-up focused on artificial intelligence and its potential use cases. (Image source: OpenAI)

    ChatGPT banned in Italy over privacy concerns

    Trending Tags

    • Sillicon Valley
    • Climate Change
    • Election Results
    • Flat Earth
    • Golden Globes
    • MotoGP 2017
    • Mr. Robot
  • Coronavirus
  • Videos
  • Home
  • Around South Asia
    • All
    • Afghanistan
    • Bangladesh
    • Bhutan
    • China
    • India
    • Maldives
    • Myanmar
    • Nepal
    • Pakistan
    • Sri Lanka
    Death toll from fatal train crash in India climbs over 230

    Modi vows punishments over deadly Odisha crash

    Magnificent edifice for a new era  

    Magnificent edifice for a new era  

    Jayantha Dhanapala was a prime mover of nuclear disarmament

    Jayantha Dhanapala was a prime mover of nuclear disarmament

    Giant leatherback sea turtle washes up on Panadura beach

    Giant leatherback sea turtle washes up on Panadura beach

    Death toll from fatal train crash in India climbs over 230

    Death toll from fatal train crash in India climbs over 230

    Rain. Image credits - Max Bender @maxwbender / Unsplash

    Southwest monsoon to gradually establish across Sri Lanka

    Myanmar soldiers refusing to fight

    Myanmar soldiers refusing to fight

    Rahul Gandhi’s speech at Stanford University

    Rahul Gandhi’s speech at Stanford University

    Imports. Image credits - Paul Teysen @hooverpaul55 / Unsplash

    Import restrictions on nearly 400 items to be relaxed

  • World
    • All
    • Japan
    • Russia
    • United Kingdom
    • United States
    The people participating in the sex competition will engage in sex sessions which can go up to six hours daily

    Sweden officially declares sex as sport, to organise European Sex Championship

    Rahul Gandhi’s speech at Stanford University

    Rahul Gandhi’s speech at Stanford University

    Alien

    Scientists expand search for signs of intelligent alien life

    Brazil former President Fernando Collor de Mello

    Brazil’s former president sentenced to almost 9 years in prison for corruption

    Fish. Image credits - Sebastian Pena Lambarri / Unsplash

    Fish moving to colder waters to survive

    Flight

    World’s best airline for 2023 named by AirlineRatings.com

    Mars

    Mars bar plastic wrapper swapped for paper

    Recep Tayyip Erdogan

    Erdogan wins Turkish election, extending rule to third decade

    Lankan President’s Japan visit will have a salutary effect on relationship

    Lankan President’s Japan visit will have a salutary effect on relationship

  • Business
  • Politics
  • Sports
  • Entertainment
    • All
    • Books
    • Gaming
    • Movie
    • Music
    • Series
    Samahan

    Amitabh Bachchan expresses confidence for Sri Lankan herbal drink Samahan

    ‘Money Back Guarantee’ to mark cinematic debut of cricketing legend Wasim Akram and wife Shaniera

    ‘Money Back Guarantee’ to mark cinematic debut of cricketing legend Wasim Akram and wife Shaniera

    The gran who couldn’t: Indu Balachandran’s latest book is for readers of all ages

    The gran who couldn’t: Indu Balachandran’s latest book is for readers of all ages

    The Weeknd

    The Weeknd is the world’s most popular artist, Guinness World Records says

    Naatu Naatu has millions of views on YouTube and is a viral sensation over social media

    Watch: Oscar winning song Naatu Naatu

    Naatu Naatu has millions of views on YouTube and is a viral sensation over social media

    Indian song ‘Naatu Naatu’ from ‘RRR’ wins Oscar award for best song

    Naatu Naatu has millions of views on YouTube and is a viral sensation over social media

    Naatu Naatu: The RRR song primed for Oscar history

    Keanu Reeves

    11 of the best films to watch in March

    Netflix. Image credits - Souvik Banerjee @rswebsols / Unsplash

    Netflix cuts prices for subscribers in more than 30 countries

  • Lifestyle
    • All
    • Fashion
    • Food
    • Health
    • Science
    • Travel
    Alien

    Scientists expand search for signs of intelligent alien life

    Fish. Image credits - Sebastian Pena Lambarri / Unsplash

    Fish moving to colder waters to survive

    Mars

    Mars bar plastic wrapper swapped for paper

    Emirates

    All Emirates passengers can now avail of free Wi-Fi connectivity onboard

    Exercise. Image credits - Victor Freitas @victorfreitas / Unsplash

    5 healthy habits that are easy to add to your day

    Global concern over babies born too soon

    Global concern over babies born too soon

    Nigerian chef Hilda Effiong Bassey

    Nigerian chef cooks for 100 hours in world record attempt

    Batik Air

    Batik Air reinstates daily services between Colombo and Kuala Lumpur

    Confucius tells us how to set ourselves free with ritual

    Confucius tells us how to set ourselves free with ritual

    Sri Lankans enjoy a walk in the beach

    My trip to Sri Lanka restored faith in fellow humans: Australian tourist

    Trending Tags

    • Golden Globes
    • Mr. Robot
    • MotoGP 2017
    • Climate Change
    • Flat Earth
  • Tech
    Whatsapp

    WhatsApp introduces new feature to edit sent messages

    WhatsApp

    WhatsApp will allow users to lock and hide conversations

    Whatsapp. Image credits - AARN GIRI / Unsplash

    WhatsApp announces multi-device feature to support more than one phone

    Apple store in Mumbai

    Apple says ‘Hello Mumbai’ at first India store launch

    WhatsApp

    WhatsApp to introduce five new features in 2023 

    OpenAI has created ChatGPT, a start-up focused on artificial intelligence and its potential use cases. (Image source: OpenAI)

    ChatGPT banned in Italy over privacy concerns

    Trending Tags

    • Sillicon Valley
    • Climate Change
    • Election Results
    • Flat Earth
    • Golden Globes
    • MotoGP 2017
    • Mr. Robot
  • Coronavirus
  • Videos
NewsIn.Asia
No Result
View All Result
Home Around South Asia

Reuters analysis on current Sri Lankan economic situation

Editor by Editor
August 4, 2021
in Around South Asia, Economy, Sri Lanka, World
Reading Time: 4 mins read
23 0
A A
Colombo. Image credits - @tk.Shakir (Taikhoom ShakirHussain)

Colombo. Image credits - @tk.Shakir (Taikhoom ShakirHussain)

33
SHARES
Share on WhatsApp

August 4 (Reuters) – Sri Lanka paid a $1 billion bond last week, but the alarming state of its finances suggests it may have been just another step towards its first sovereign default.

All the tell-tale crisis signs are there: bonds at nearly half their face value, debt-to-GDP levels above 100%, over 80% of government revenues being spent on interest payments alone and barely enough reserves to cover a few months of spending.

Subscribe to our Whatsapp channel for the latest updates on the news you need to know

ADVERTISEMENT

Chances of the island nation soldiering on alone look slim, especially with COVID-19 keeping the tourism industry on its knees and limiting the remittances expats are sending back from overseas.

Reflecting the gravity of its plight, Colombo’s dollar-denominated government bonds are among the most distressed in the emerging market universe.

Yet last week’s bond payment underscored the strong desire of the government to honour its debt and avoid the ignominy of a first sovereign default.

It has also brought it some breathing room – the next major payment is not until January, when it must find $500 million.

But that is followed by a more hefty $1 billion in July and another $1 billion before the end of 2023. On top of an eyewatering fiscal deficit estimated to be around 11%, it could easily run out of rope.

“We always felt this was potentially heading for a default,” Axa Investment Managers’ Sailesh Lad said. “And in the next 12, 18, 24 months, if nothing changes, we think that is probably going to be the case.”

Most investors see an IMF programme as the only route out of trouble, but the likelihood it will require painful spending cuts means the government remains reluctant for now.

Also read –
Sri Lanka heading for worst medical tsunami in coming weeks from Delta wave
Lady Ridgeway runs out of capacity to treat COVID-19 infected children

Instead, it appears to be favouring a muddle-through approach. It is leaning on foreign exchange swaps with China and India – which are both vying for influence in Sri Lanka – as well banking on an upcoming $800 million injection of IMF COVID crisis money. 

In comments reported by local media last week, State Minister of Money and Capital Markets Ajith Nivard Cabraal said Sri Lanka would make repayments via careful management of its existing reserves, as well as expected inflows.

Cabraal also said that the drop in reserves, which has seen them halve to under $4 billion in the last 12 months, was temporary. He expects inflows of $2.65 billion over the next three months, in addition to a $1.5 billion currency swap with China, as well as the rollover of loans maturing in the rest of 2021.

Analysts are unconvinced, however.

“We see the forecasted rise in reserves as overly optimistic,” said Esther Yong, Asia fixed income research at Julius Baer. “The current measures undertaken are short-term in nature and not a panacea for its weak debt sustainability and external position.”

There’s also uncertainty about what strings might be attached to any swap deals and whether flows will materialise at all.

With its strategic geographic location and one of the deepest ports in the world, Sri Lanka has been an integral part of China’s Belt and Road plan, and Colombo hopes that will convince Beijing to provide more support.

“China can lend enough money for them to muddle through, but … are they willing to throw good money after bad?,” said Carlos de Sousa, a manager of emerging market debt portfolios at Vontobel Asset Management.

“My base case is no, especially because India doesn’t seem willing to play ball.”

An ominous sign for Sri Lanka is that the muddle-through approach is rarely a lasting fix in struggling emerging markets.

Goldman Sachs analysts point out that since 2010, only three of the 13 countries where bond ‘spreads’ spiked to distressed levels for several months managed to avoid a default.

And even if Sri Lanka does change tack and opt for an IMF help, the dire state of its finances mean a restructuring would almost certainly be required

“Mathematically, it is very hard for it to continue the way it is going,” Mikhail Volodchenko, a colleague of Lad’s at Axa, said. “For now it is plugging the hole and surviving.” 

Also read –
Sri Lanka heading for worst medical tsunami in coming weeks from Delta wave
Lady Ridgeway runs out of capacity to treat COVID-19 infected children

For similar articles, join our Whatsapp group for the latest updates. – click here

Tags: EconomyReutersSri LankaWorld

Related Posts

Death toll from fatal train crash in India climbs over 230
Around South Asia

Modi vows punishments over deadly Odisha crash

June 4, 2023
The people participating in the sex competition will engage in sex sessions which can go up to six hours daily
Around The World

Sweden officially declares sex as sport, to organise European Sex Championship

June 4, 2023
Magnificent edifice for a new era  
Development news

Magnificent edifice for a new era  

June 4, 2023
Jayantha Dhanapala was a prime mover of nuclear disarmament
Around The World

Jayantha Dhanapala was a prime mover of nuclear disarmament

June 4, 2023
Giant leatherback sea turtle washes up on Panadura beach
Around South Asia

Giant leatherback sea turtle washes up on Panadura beach

June 3, 2023
Death toll from fatal train crash in India climbs over 230
Around South Asia

Death toll from fatal train crash in India climbs over 230

June 3, 2023
  • Electricity

    Power cut schedule for today in Sri Lanka: Uninterrupted power supply

    60244 shares
    Share 24120 Tweet 15052
  • Registration open for National Fuel Pass

    6641 shares
    Share 2694 Tweet 1645
  • Foreign Currency Official Exchange Rates from Central Bank of Sri Lanka

    1858 shares
    Share 750 Tweet 462
  • WATCH : Yohani’s first live performance in India

    790 shares
    Share 329 Tweet 192
  • Power interruption schedule released: Check your area power cut time

    742 shares
    Share 320 Tweet 176
  • About Us
  • Advertisements
  • Privacy Policy
  • Contact

© 2022 All rights reserved.

No Result
View All Result
  • Home
  • Around South Asia
    • Afghanistan
    • Bangladesh
    • Bhutan
    • China
    • India
    • Maldives
    • Myanmar
    • Nepal
    • Pakistan
    • Sri Lanka
  • Around The World
  • Breaking News
  • Business
    • Exchange
  • Climate Change
  • Governance
    • Crime
    • Diplomacy
    • Defense
    • Human Rights
    • Politics
    • Strategic Affairs
  • Lifestyle
    • Books
    • Entertainment
      • Arts
      • Cinema
      • Gaming
      • Music
      • Movie
      • Series
      • TV
    • Health
    • Fashion
    • Food
    • Travel
  • Culture
    • Ethnicity
    • Gender
  • Development news
  • Economy
  • Education
  • Environment
  • Coronavirus
  • History
  • National
  • Offbeat
    • Media
    • Music and arts across South Asia
  • Recommended
    • Headlines
    • Highlights
    • Top Picture
    • Top Story
  • Religion
  • Science
  • Sports
    • Football
    • Cricket
      • LPL
      • IPL
    • Tennis
    • Formula 1
    • NBA
  • Tech
    • Instagram
  • United Nations
  • Weather
  • World
    • Japan
    • Russia
    • United States
  • Videos

© 2022 All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

eskisehir escort -

https://www.vudols.com/

- Sağlık Personeli - mersin escort - Antalya korsan taksi -
ip booter