News
After Lanka and Pakistan, now Bangladesh lines up before IMF for bailout
After the collapse of the Sri Lankan economy, attention has turned to the state of affairs in other South Asian countries such as Pakistan, Bhutan and Bangladesh. All three countries have either curtailed imports or are planning to do so, to salvage their fast-depleting foreign exchange reserves and avoid a Lanka-like forex crisis.
While the presence of Pakistan, which is deeply indebted to China like Lanka, and tourism-dependent Bhutan has taken a massive blow from the pandemic-induced travel restrictions on the list of troubled economies is not surprising, that of Bangladesh is. Just last year, the tiny nation was celebrated for beating India in per capita income.And the UN decided to graduate it from the least-developing country category to the developing country grouping by 2026.
Bangladesh seems to have lost that momentum as Dhaka is now beseeching the IMF for a $4.5 billion bailout package to tide over its deepening economic crisis.It has also knocked the doors of the World Bank and Asian Development Bank seeking immediate relief of $1 billion from each.So, what went wrong? Bangladesh’s $ 416 billion economy is heavily dependent on its garment industry which survives on exports mostly to Europe, the US and Latin American countries.
It has been supporting the country’s growth for years but things changed dramatically following the Ukraine war pushing the prices of everything up. In response to the soaring energy prices, the Sheikh Hasina-led government was forced to introduce scheduled outages that directly impacted the textiles industry which relies on an uninterrupted power supply. On the other hand, demand also dwindled as retailers in the US and European markets — the biggest customers of Bangladesh’s garment products — started holding or cancelling orders due to disruptions and uncertainties in their own economies due to the war in Ukraine.
According to the latest available data, Bangladesh’s foreign exchange reserves stand at $39.67 billion as of July 20, which is sufficient for just four months’ worth of imports — slightly higher than the IMF’s recommended three-month cover.Just for comparison, the forex reserves were $ 45.5 billion in the year-ago period.
The country is reeling under inflation, too. In June, price rise hit a nine-month high of 7.56%, taking the average inflation for 2021-22 to 6.15%, overshooting the revised annual target of 5.9%.Bangladesh’s imports stood at $81.5 billion between July 2021 and May 2022, up 40% from a year earlier, according to Bangladesh Bank data.As a result, the current account deficit — the shortfall between exports and imports — widened over six times to $17.2 billion in the first 11 months of fiscal 2021-22.
While the Bangladesh finance minister A H M Mustafa Kamal is confident that the IMF aid will help the country tide avoid a crisis, such bailouts always come with strings attached. The Washington-based multilateral lender is known to put stringent conditions for its loans.
According to a report in The Daily Start newspaper, the conditions could include withdrawal of energy subsidies, implementing a fuel pricing mechanism, removing interest rate caps on lending and borrowing, resetting the mechanism to calculate foreign currency reserves, taking steps to increase revenue base, and strengthening corporate governance in the banking sector.
Of these, removing energy subsidies for consumers will be a major challenge for the government as it could trigger public anger. Negations on this clause is likely to drag the process.Obtaining IMF loans is a long process. An IMF delegation is expected to visit Dhaka in September to discuss the terms and conditions.By December, the deal is expected to be locked in for placing at the IMF’s board meeting in January. The question is, will Dhaka be able to manage things till then. (NIE)
Latest News
Teacher recruitment examinations will be conducted in accordance with the relevant court decisions – PM
Prime Minister Dr. Harini Amarasuriya stated that the forthcoming two teacher recruitment examinations will be conducted in accordance with the relevant court decisions pertaining to the ongoing legal proceedings and further noted that, taking into consideration the requests received, steps have been taken to make a request to Court’s approval to revise the conditions of the effective date of degree completion.
The Prime Minister made these remarks while addressing a meeting held at Monaragala Royal College to brief education authorities of the Monaragala District on the new education reforms.
Under the new education reforms, Smart Boards will be provided to 132 schools in the Monaragala District as part of the program to equip secondary schools with modern technology. As a symbolic step under this initiative, Smart Boards were presented to 10 secondary schools under the Prime Minister’s patronage. This program is being implemented with the intervention of the Digital Task Force operating under the Prime Minister’s Office. It was also emphasized that a new digital policy, formulated with special attention to child protection, will be introduced in April.
As part of her visit to the Monaragala District on the 13 th of February, the Prime Minister observed the implementation of the new learning methodologies introduced for Grade One under the new education reforms. She visited Kumbukkana Sri Shanmugam Tamil Maha Vidyalaya and Maduruketiya Maha Vidyalaya in Monaragala to observe the educational activities of Grade One students.
Considering the increase of student numbers and the development of infrastructure facilities, the Prime Minister also approved a proposal submitted by the School Development Society to rename Maduruketiya Maha Vidyalaya as Monaragala Dharmaraja Maha Vidyalaya.
Teachers briefed the Prime Minister that the new education system, supported by revised workbooks and activity-based learning methods, has proven to be effective, with students participating enthusiastically.
Addressing education officials further at the meeting held at Monaragala Royal College, the Prime Minister stated:
“Although this will not provide a complete solution to the existing teacher vacancies, these examinations can offer considerable relief. According to the Court’s previous determination, the effective date of degree completion had been set as 30.06.2025. However, considering numerous requests and following the cabinet approval we have sought Court’s consent to revise this date. We will act in accordance with the decision granted.
Funds allocated for school infrastructure must be utilized transparently and in line with proper planning, and progress must be reported accordingly. We cannot move forward by dividing ourselves along national, provincial, rural, or urban lines. As education authorities, you must make swift and accurate decisions based on correct data.
Further, discussions are already underway within the Piriven Committee of the Ministry of Education to develop Piriven education and to address the issues faced by Piriven teachers.”
The event was attended by the members of the Maha Sangha, Uva Province Governor Attorney-at-Law Kapila Jayasekara, Deputy Minister of Trade and Commerce R.M. Jayawardhana, Member of Parliament Ajith Agalakada, Uva Provincial Education Secretary Nihal Gunarathne, and several officials from the education sector.



[Prime Minister’s Media Division]
Latest News
Low-pressure area is likely to form over the southeastern Bay of Bengal around 15th February
Special Weather Bulletin issued by the Natural Hazards Early Warning Centre of the Department of Meteorology
Issued at 10.30 a.m. on 13 February 2026
A low-pressure area is likely to form over the southeastern Bay of Bengal around 15th February.
The general public are requested to be attentive to the future forecasts and bulletins issued by the Department of Meteorology in this regard
News
Sajith points to irregularities in coal procurement deals
Opposition and Samagi Jana Balawegaya (SJB) Leader Sajith Premadasa has claimed that all five coal shipments, imported recently for the Lakvijaya Coal Power Plant, in Norochcholai, were of substandard quality.
The remarks were made on Thursday during a meeting of the Sectoral Oversight Committee on Infrastructure and Strategic Development at the Parliament complex, which summoned senior officials from the Ceylon Electricity Board (CEB), the Public Utilities Commission of Sri Lanka (PUCSL), and the Lanka Coal Company to discuss the controversial coal imports.
Premadasa raised concerns over the tender process, highlighting a lack of transparency and deviations from the original procurement plan for the country’s key 900-megawatt power plant. He noted that although the order for 2,500 tonnes of coal was issued in April, deliveries were delayed due to the May monsoon season.
The Opposition Leader criticised the shortened tender timeline, which was reduced from the standard 42 days to just 21, and demanded that reports approving the tender, technical instructions, and conditions for both previous and current coal tenders be submitted to Parliament.
Premadasa also questioned the qualifications and experience of the suppliers selected by the government, asking whether responsibility for the nation’s primary electricity production had been entrusted to an unsuitable company.
He also emphasised the coal specifications, stating that the net NCP value should be 5,900 and requested reports if the supplied coal failed to meet that standard. Premadasa asked whether coal had been added to boilers before test results were received, whether samples had been sent to India for testing, and requested the corresponding reports.
In addition, he sought clarity on potential financial losses exceeding one million rupees, reductions in the annual coal requirement due to extra coal burning, and any boiler damage caused by substandard coal.
The Opposition Leader called for a full investigation into the tender process, including a forensic audit, noting that prior questioning through the Sectoral Oversight Committee had already highlighted deficiencies in procurement procedures.
-
Features6 days agoMy experience in turning around the Merchant Bank of Sri Lanka (MBSL) – Episode 3
-
Business6 days agoRemotely conducted Business Forum in Paris attracts reputed French companies
-
Business6 days agoFour runs, a thousand dreams: How a small-town school bowled its way into the record books
-
Business6 days agoComBank and Hayleys Mobility redefine sustainable mobility with flexible leasing solutions
-
Business3 days agoAutodoc 360 relocates to reinforce commitment to premium auto care
-
Midweek Review3 days agoA question of national pride
-
Opinion2 days agoWill computers ever be intelligent?
-
Midweek Review3 days agoTheatre and Anthropocentrism in the age of Climate Emergency
