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ஜெனரல்
Sri Lanka is poised to resume discussions with bondholders, aiming to achieve a resolution regarding debt restructuring by June 2024. These negotiations are primarily centered around the bondholders' proposal, notably the introduction of a Macro-Linked Bond (MLB). Initial proposals suggested a haircut of 20% on existing bonds, with subsequent revisions in April proposing an increased haircut of 28%, while Public Debt Interests (PDIs) remained unaffected. Following discussions, bondholders revised their proposal in April 2024 to address government concerns, with the IMF currently assessing the latest proposal of the ad hoc group, according to First Capital Research's May 2024 economic watch report.
In terms of local economic developments, April 2024 saw an increase in Foreign Reserves by USD 478.0 million, reaching USD 5.4 billion, driven by continuous dollar purchases by the government. Market Liquidity fluctuated but generally turned positive during the month. Notably, on March 24, export earnings surged by 9.8% year-on-year to USD 1,138.9 million, with all major export categories experiencing increases. Industrial exports were boosted by petroleum products, textiles, and garments, while agricultural exports, particularly tea, also saw improvements. Mineral exports experienced a slight increase. The month also witnessed a significant boost in textiles and garments exports, reaching the highest levels recorded since December 2022. Additionally, workers' remittances increased marginally in March 2024, and earnings from tourism substantially rose to USD 338.4 million compared to March 2023. The balance of payments for January to March 2024 recorded a net inflow of USD 472.8 million in March 2024, reflecting positive economic momentum.
