IMF warns Sri Lanka on slowing reserve collections, money printing

The International Monetary Fund (IMF) has warned Sri Lanka about a slowdown in the accumulation of foreign reserves, highlighting the significance of strengthening external buffers. In May 2023, Sri Lanka began printing money to promote business by pumping artificial rupee reserves into banks. However, this resulted in currency depreciation and exacerbated currency volatility. The central bank responded by lowering reserve ratios and selling securities. Analysts are concerned that these efforts, motivated by IMF aims, would weaken monetary stability and annoy the people. The net reserves of Sri Lanka's central bank have become negative, needing remedial action. This issue exposes tensions between policy objectives.

https://economynext.com/imf-warns-sri-lanka-on-slowing-reserve-collections-money-printing-133066/

Economy Next

2023-10-02

தொடர்பான தலைப்புக்கள்

SriLankan loses Rs. 12.9 b in Q1

SriLankan Airlines recorded a Rs. 12.9 billion net loss in Q1 FY25, driven by cash flow challenges, legacy issues, and financial costs from past debt. ...

மேலும் அறிந்து கொள்ள

SL pays $ 503 m for 1H debt servicing

By June 2024, Sri Lanka's external debt had reached $37.5 billion, with $8.19 billion in unpaid debt service accumulating since the April 2022 debt standstill on bilateral and commercial loans.

மேலும் அறிந்து கொள்ள

Workers’ remittances decline in September

In September 2024, Sri Lanka’s remittances reached $556 million, tourism earnings were $181 million, and gross official reserves rose to $6 billion, covering 3.9 months of imports.

மேலும் அறிந்து கொள்ள

அனைத்தையும் காட்டு