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Finance Ministry lists 4 pragmatic approaches to addressing the country’s debt burden

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Finance Ministry of Sri Lanka

By Sanath Nanayakkare

The Ministry of Finance, in a document dated Sep 12, 2024, on its official website has highlighted the importance of restructuring the country’s debt burden in a seamless manner while maintaining the equilibrium of the overall economy.

The following are some excerpts from the document.

“Over several decades, Sri Lanka has accumulated a large volume of public debt in order to repay such debt in absolute terms requires either;

Generating a large annual budget surplus that can be used to settle debt on a net basis each year

Divesting state assets converting this into cash that is used to settle past liabilities

The first option would incur a significant effort on the part of domestic taxpayers to generate revenue that exceeds total government expenditure creating a surplus to settle debt. A budget surplus has been achieved only twice in Sri Lanka’s post-independence history (1954 and 1955). Even a primary budget surplus where revenue exceeds expenditure excluding interest has only been achieved on six occasions since Independence. Sri Lanka has also not been successful in several recent attempts of divesting state enterprises and assets.”

“Accordingly, the pragmatic approach to addressing the country’s debt burden is to restructure debt in a manner that;

Creates time and space for the country to rebuild its fiscal and external buffers through capital grace periods

Reduces the cash flows through lower interest or coupon rates such that the restructured cash outflows are quite easily accommodated with the foreign exchange inflows generated by the country

Extends maturity of debt that gives time for the country to grow its economy such that the capacity to repay capital obligations is enhanced

Reduces the magnitude of debt through nominal haircuts on outstanding capital

“A debt restructuring process entails a combination of the above mechanisms depending on the nature of different creditors which results in material debt relief to the debtor country,” the document points out.



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Ceylinco Life agent among three global finalists for award

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Ceylinco Life’s Ambalantota branch agent AIP Manjula

Ceylinco Life’s Ambalantota branch agent AIP Manjula has been named one of three global finalists for the prestigious Insurance Agent of the Year award at the 11th Asia Trusted Life Agents & Advisers Awards (ATLAA) 2026.

The recognition places a Sri Lankan insurance professional among the finalists in a regional field spanning South Asia, Southeast Asia, East Asia and the wider Asia-Pacific region.

Ceylinco Life said the achievement reflected the calibre and customer-focused approach of its agency force, while recognising Manjula’s professionalism and commitment to policyholders.

The award evaluates insurance agents on criteria extending beyond sales performance, including ethical conduct, client service, policy persistency, digital adoption, innovative practices and contributions to the insurance industry and community.

The awards are organised by Asia Advisers Network and Asia Insurance Review, with LIMRA as co-organiser. An independent judging and balloting process is monitored by KPMG as the official scrutineer. The judging panel comprises senior insurance executives, association presidents and industry experts from across the Asia-Pacific region.

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CEAT Kelani retains AA+ rating for sixth year

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CEAT Kelani Holdings (CKH) has retained its National Long-Term Rating of ‘AA+(lka)’ with a Stable Outlook from Fitch Ratings for the sixth consecutive year, reflecting the company’s financial resilience and leading position in Sri Lanka’s pneumatic tyre market.

The ‘AA+(lka)’ rating, the second-highest on Fitch’s national scale, indicates a very strong capacity to meet financial commitments.

Fitch said CKH’s established market leadership and resilient financial profile remained key strengths, while noting its exposure to price-sensitive, cyclical and highly competitive markets.

The Stable Outlook reflects expectations that the company will maintain its market position despite rising input costs and increasing competition from imported tyres, while preserving adequate credit metrics during periods of weaker earnings and higher investment.

Fitch expects CKH’s established brand, extensive dealer network and adaptive pricing strategies to support its market position. Planned production facility upgrades are also expected to improve product quality, particularly in the radial tyre segment.

The rating agency expects near-term pressure on margins from higher raw material and energy costs but said the company’s low leverage and sound liquidity would provide a cushion.

CKH Chairman Chanaka De Silva said the rating reinforced the company’s focus on disciplined financial management, operational adaptability and long-term investment.

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Commercial Bank leads nationwide aquatic clean-up drive

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Sanath Manatunge, Managing Director/CEO of Commercial Bank and some of the Bank’s staff participating in the coastal cleanup programme

Commercial Bank of Ceylon mobilised employees, customers, volunteers and community members for a nationwide coastal and aquatic clean-up campaign across 20 locations on September 19 to mark International Coastal Cleanup Day 2026.

Conducted under the bank’s sustainability platform, themed ‘Forward Together for a Cleaner Future’, the initiative covered 16 coastal locations and four inland waterways, bringing together stakeholders for a coordinated environmental conservation effort.

The flagship programme was held at Mount Lavinia Beach, with additional activities at Wellawatte and Galle Face beaches. Similar initiatives were conducted by the bank’s regional offices at locations including Kalutara, Negombo, Trincomalee, Batticaloa, Puttalam, Jaffna, Galle, Dondra, Tangalle and along the Mahaweli River.

Employees, management, Future Force volunteers, customers and their families participated alongside the Marine Environment Protection Authority (MEPA), United Nations Global Compact Network Sri Lanka, government and local authorities, environmental organisations and community members.

The bank said the initiative reflected its commitment to water stewardship after adopting Sustainable Development Goal 6 — Clean Water and Sanitation — as a priority goal in 2025.

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