SriLanka’s state-run SriLankan Airlines pays bond interest after sovereign debt default Source:Economynext ECONOMYNEXT – State-owned SriLankan Airlines will settle an interest payment of a 175 million US dollar sovereign guaranteed debt, the loss making carrier said on Tuesday, after the country failed to pay foreign sovereign debts since mid April. Sri Lanka’s central bank and finance ministry have suspended all its foreign debts including interest payments with effect from April 12 and declared a “soft” sovereign debt default after the island nation’s usable foreign currency reserves declined to near zero amid a balance of payment crisis. Since then, the government defaulted an interest payment of 78 million US dollar of a sovereign bond on May 19 after one month grace period. Central Bank Governor Nandalal Weerasinghe has said no foreign debts will be repaid until the external loans are restructured. ...

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Sri Lanka Progress – By Dr Harold Gunatillake Website: www.Doctorharold.com Transcript: Protest marches are a daily occurrence Gota, Ranil, and others working with consistence *Colombo has taken steps to raise taxes, put state assets on sale and pledged to slash spending to the “bare bones”. *Sri Lanka makes progress toward IMF support – but no bailout package Support through Extended Fund Facility (EFF) is possible Nandalal Weerasinghe was appointed CBSL Governor for Six more years. The International Monetary Fund has ended talks with Sri Lanka, failing to conclude a deal for a bailout package for the near-bankrupt nation after ten days. The IMF has said Sri Lanka needs to whittle down existing debt to ‘sustainable’ levels before receiving any aid. “The discussions will continue virtually to reach a staff-level agreement on the EFF arrangement in the near term,” the IMF said, referring to the credit arrangement, called an extended fund facility. ...

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Sri Lanka Progress talks IMF Bailing Out Details – By Dr Harold Gunathilake Website: www.Doctorharold.com Transcript: Wickremesinghe requested that the staff-level delegation from financial institutions visit Colombo as soon as possible to finalise the staff-level agreement. Sri Lankan Prime Minister Ranil Wickremesinghe has urged IMF chief Kristalina Georgieva to send a team to Colombo “as soon as possible” so that a staff-level agreement could be finalised as his cash-starved government is seeking to find USD 6 billion to keep the country afloat for the next six months. During his talks with the IMF Managing Director on Tuesday, Wickremesinghe “requested that the staff-level delegation from the IMF visit Sri Lanka as soon as possible so that the staff-level agreement could be finalised,” online portal news first. Lk reported on Wednesday, quoting a statement issued by the Prime Minister’s Media Division. The statement said that Georgieva expressed her willingness to support Sri Lanka ...

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Sri Lanka-current 27th May 2022 – By Dr Harold Gunatillake *Sri Lanka PM to take over as finance minister too. Ali Sabry, previous finance minister, resigns *Wickremesinghe will present an interim budget within six weeks that will slash government expenditure ‘to the bone’. *The PM is seeking $4bn from the IMF, China and Japan to pay for food and fuel even as he slashes the budget to ‘bare bones’. *Sri Lanka’s Rajapaksa Appeals for Bridging Finance in TokyoLanka has run out of money to pay for food, fuel, medicines and other daily need. *Sri Lanka hikes fuel prices, hires financial and legal advisers *Sri Lanka’s inflation increased by 20-24 per cent Lanka’s Prime Minister Ranil Wickremesinghe will take charge as finance minister, the president’s office has announced. It will lead talks with the International Monetary Fund (IMF) as the crisis-hit nation seeks a bailout. “Prime Minister Ranil Wickremesinghe was sworn ...

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China becomes wild card in Sri Lanka’s debt crisis – by BHARATHA MALLAWARACHI China says its initiative to build ports and other infrastructure across Asia and Africa, paid for with Chinese loans, will boost trade Source:abcnews.go.com COLOMBO, Sri Lanka — China says its initiative to build ports and other infrastructure across Asia and Africa, paid for with Chinese loans, will boost trade. But in a cautionary tale for borrowers, Sri Lanka’s multibillion-dollar debt to Beijing threatens to hinder efforts to resolve a financial crisis so severe that the Indian Ocean nation cannot import food or gasoline. Sri Lanka’s struggle is extreme, but it reflects conditions across dozens of countries from South Pacific islands through some of the poorest in Asia and Africa that have signed onto Chinese President Xi Jinping’s Belt and Road Initiative. The total debt of poor countries is rising, raising risks others might run into trouble. Sri Lanka’s 22 ...

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