A man rests while waiting in a line to buy diesel near a Ceylon Petroleum Corporation fuel station, amid the country's economic crisis in Colombo, Sri Lanka, April 7, 2022. (Reuters)Sri Lanka Crisis Live News Updates: The Sri Lankan Foreign Minister asserted Thursday that the government is still in majority, and there is no consensus over who can replace the President and the Prime Minister, Reuters reported.
Ali Sabry, who quit as Finance Minister just a day after his appointment, urged the government to seek a financial bailout, a debt moratorium, or some other means to address the ongoing crisis. Speaking in Parliament, Sabry Thursday said the government needs to look into restructuring a $1 billion international sovereign bond maturing in July, Reuters reported. Sabry called for political stability in order for the government to hold talks with the World Bank and initiate a bridge-financing plan with the Asian Development Bank (ADB).
Sri Lanka has appointed a three-member advisory group to assist government officials in engaging with the International Monetary Fund (IMF). Meanwhile, India has delivered two fuel consignments to the island nation in the last 24 hours. India supplied 36,000 tonnes of petrol and 40,000 tonnes of diesel, the Indian High Commission in Colombo said, taking the total fuel supplied to Sri Lanka by India to 270,000 tonnes.
Government Medical Officers' Association members walks with placards against the Sri Lanka's President Gotabaya Rajapaksa after his government lost its majority in the parliament, amid the country's economic crisis, during a protest near a road leading to the parliament building in Colombo, Sri Lanka, April 6, 2022. (REUTERS/Dinuka Liyanawatte)
India stands ready to continue working with Sri Lanka for rapid post-COVID economic recovery, in line with our neighbourhood first policy, MEA spokesperson Arindam Bagchi said on Thursday.
The official further stressed that the relationship between India and Sri Lanka is rooted in shared civilisation values and aspirations of the people and added that the cooperation based on commonality and interest has been strengthened in recent months.
Speaking on the developing economic crisis in the neighbouring country, the MEA official said India has extended assistance of about USD 2.5 billion during the past 2-3 months, including credit facilities for fuel and food. (ANI)
Hitting out at the Centre for its brand of "nationalism", Rajasthan Chief Minister Ashok Gehlot Thursday said that the Union government is taking India on the path of a Sri Lanka-like economic breakdown.
"In Sri Lanka today, people do not have food because there, too, attention was diverted in the name of nationalism and opposition towards minorities. Modi government is trying to take India in the same direction," Gehlot said in a tweet.
Sri Lankan shares closed nearly 4 per cent lower on Thursday, hurt by losses in financials and industrials stocks, as investors awaited the central bank's monetary policy meeting outcome amid the country's worst economic crisis in decades.
At the close of trade, the CSE All-Share index settled 3.86% lower at 8,249.70 points.
The Central Bank of Sri Lanka said it would hold its monetary policy review meeting on Friday, with the review decision to be announced later on the same day after the market closes. (Reuters)
Sri Lanka's reserves dropped 16.1% to $1.93 billion in March from a month earlier, the Central Bank said on its website on Thursday, as the country suffers its worst economic crisis in decades. (Reuters)
Chamma Lal Sanjeeva, President, Medical and Civil Rights Professional Association of Doctors, told ANI, "Economic crisis has affected people from the public and private sectors. The fuel crisis has impeded electricity supply and logistics facilities of crucial medical equipment and life-saving medicines."
As Sri Lanka continues to face its worst economic crisis, people on Thursday waited in lines to get kerosene and fuel amid their shortage.
Ali Sabry, who quit as Finance Minister just a day after his appointment, while speaking in Parliament Thursday said, "We must have political stability to find solutions to the financial crisis."
"We must discuss with the World Bank and we must have a bridge-financing plan with the ADB (Asian Development Bank). If we don’t have stability, who will conduct these talks?," he was quoted as saying by Reuters.
"We must look at how to structure the $1 billion international sovereign bond payment maturing in July. We must go to the IMF, there is no other solution that I can see," Sabry said.
Sri Lanka's Central Bank has rescheduled the monetary policy review for Friday.
The bank was originally due to hold its policy meeting last Monday.
An analyst said the central bank was expected to hike key interest rates by 300-400 basis points (bps) - following a 100 bps increase in early March - to tame inflation that hit 18.7% in March.
"We also expect the newly appointed governor to outline potential measures to be included in the IMF reform plan, views on potential debt restructuring, and currency management," said Lakshini Fernando of Asia Securities, adding she also expected Weerasinghe to address the need for "higher stability and transparency" at the bank. (Reuters)
Ali Sabry, who quit as Finance Minister just a day after his appointment, urged the government to seek a financial bailout, a debt moratorium, or some other means to address the ongoing crisis. Speaking in Parliament, Sabry Thursday said the government needs to look into restructuring a $1 billion international sovereign bond maturing in July, Reuters reported.
The Sri Lankan government is struggling to replace Ali Sabry who quit as the Finance Minister on Tuesday, a day after his appointment.
A source close to the administration told news agency Reuters that despite appeals to a range of officials and top private sector professionals, the President and his close aides have failed to find a replacement.
Travel Agents Association of India postponed its 66th Convention which was to be held in Colombo, Sri Lanka from April 19 to 22.
"The current economic and political situation in the island nation, whereby there is a shortage of fuel, power, gas, the daily consumer needs, along with the political unrest and treason in parts of the country, has compelled us to postpone the convention in Colombo," the Association said in its statement.
Doctors and medical students in Sri Lanka came out on the streets Wednesday, protesting against the shortages of drugs in the island nation amid its worsening economic crisis. The doctors demanded that a "health emergency" be declared in the country.
The Presidential Advisory Group on Multilateral Engagement and Debt Sustainability includes Indrajit Coomaraswamy, former governor of the Central Bank of Sri Lanka and former director of the Economic Affairs Division of the Commonwealth Secretariat, according to a statement issued by the President Media Division on Wednesday.
The other members are Shanta Devarajan, Professor of the Practice of Development, Georgetown University and former chief economist of World Bank; and Sharmini Coorey, former director of the Institute of Capacity Development of the IMF Institute, and former deputy director of the Africa Department, IMF.
"Among the responsibilities that the Presidential Advisory Group will undertake are to engage in discussions with relevant Sri Lankan institutions and officials engaging with the IMF, and to provide guidance that will address the present debt crisis and lead towards sustainable and inclusive recovery for Sri Lanka," the statement said. (PTI)
Sri Lanka's new central bank governor Nandalal Weerasinghe, set to take office on Thursday, will hold a monetary policy meeting the following day, a source with direct knowledge of the matter told Reuters.
"The monetary board meeting will be held on Friday afternoon," said the source, who declined to be identified ahead of the announcement.
The policy is likely to be unveiled the following morning, after which the new governor is expected to lay out his priorities and plans at a news conference, the source added. (Reuters)
According to sources accessed by news agency Reuters, Sri Lanka's new Central Bank Governor Nandalal Weerasinghe will be taking office on Thursday.
This came after Ajith Nivard Cabraal announced his resignation, amid the spate of Cabinet Ministers leaving their posts.
Doctors in Sri Lanka came out on the streets Wednesday, protesting against the shortages of drugs in the island nation amid its worsening economic crisis. The doctors demanded that a "health emergency" be declared in the country.
Vasan Ratnasingam, a doctor at Colombo's Lady Ridgeway Hospital for Children, the largest such free-of-charge facility in Sri Lanka with some 2,000 beds, told news agency Reuters that they had run out of at least one vital drug, Digoxin, given for heart conditions. "And other than that, 102 essential drugs are in shortage," the doctor added.
After Russia, public sector ECGC Ltd, which provides credit risk insurance and related services for exports, has put Sri Lanka, which is going through its financial crisis, in the Restricted Cover Category – I (RCC-I).
While the present country rating of Sri Lanka remains unchanged as C1 (moderately high risk), its cover category has been changed from Open Cover to Restricted Cover Category – I (RCC-I). For countries in RCC-1, revolving limits are approved specifically on a case-to-case basis, normally valid for a year. However, the premium rates for the shipments insured under the insurance covers will remain unchanged. “This review has been carried out to assess and monitor the risks covered under ECGC’s export credit insurance policies which will enable it to place appropriate risk mitigation measures in place and assist its customers in improving payment realization prospects from buyers in Sri Lanka,” ECGC said. Read more
Sri Lanka has appointed a three-member advisory group to assist government officials engaging with the International Monetary Fund (IMF), the president said on Wednesday, as the island nation looks to get through a severe economic crisis.The responsibilities of the group "of economic and fiscal experts" include providing guidance that will address the present debt crisis, President Gotabaya Rajapaksa said in a statement. (Reuters)
Sri Lankan cricketer Sanath Jayasurya Thursday expressed dismay over the ongoing economic crisis in the island nation and said that it was isunfortunate that the people are going through this situation, as reported by news agency ANI.
Jayasurya also thanked 'big brother' India for helping Sri Lanka. "You know as always as a neighbour, the big brother next to our country has been helping us... We are very grateful to the Indian government and the Prime Minister (Modi)," Jayasurya said.
Amid the ongoing unrest in Sri Lanka owing to its economic crisis, the United States on Wednesday advised its citizens against travelling to the island nation, pointing to the fuel and medicine shortages there, besides the Covid-19 and terror threats. "Reconsider travel to Sri Lanka due to Covid-19 and fuel and medicine shortages. Exercise increased caution in Sri Lanka due to terrorism," State Department said in its latest travel advisory which has now been placed on Level 3.
The Centre for Disease Control and Prevention (CDC) has issued a Level 3 Travel Health Notice for Sri Lanka due to Covid-19, indicating a high level of Covid-19 in the country. "Your risk of contracting Covid-19 and developing severe symptoms may be lower if you are fully vaccinated with an FDA-authorised vaccine. Before planning any international travel, please review the CDC's specific recommendations for vaccinated and unvaccinated travellers," it said. (PTI)