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Lanka to lend US$2.5bn to US and top-rated borrowers in 2023 under IMF deal: analysis

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ECONOMYNEXT – Sri Lanka is projected to lend 2,533 million US dollars mainly to the US and Euro areas during an International Monetary Fund deal in 2023 including a mandatory 1.4 billion US dollars collected from exports and remittances, according to official documents.

Sri Lanka is expected to get two tranches of 331.2 million dollar (254 million special drawing rights each) in March and September 2023 from the IMF.In 2023 Sri Lanka has to repay 256.4 million dollars from an earlier IMF loan taken during an earlier currency crisis.

Net inflows from the IMF would be 406.12 million US dollars in 2023 if the first review is completed in September 2023.Sri Lanka has committed to collect at least 1.4 billion US dollars from remittances and exports and lend to the US and other developed nations during 2023 under the IMF deal.

A large volume has already been collected. An ad hoc peg is now operated under the IMF deal to buy dollars and export to the West, as ‘below-the-line outflows. Sri Lanka’s foreign reserves are usually loaned to highly rated sovereign or sovereign linked borrowers, mainly in the US.

But there have been amounts of Euro assets in Sri Lanka’s foreign reserves at times, triggering forex losses when the dollar to Euro parity changed.Under the IMF program there is a performance criterion to increase net international reserves by 1,948 million dollars during 2023.

Sri Lanka is also expected to repay a 200 million US dollar swap to Bangladesh during 2023, which will also raise the NIR.At the moment Sri Lanka’s central bank is in debt after borrowing from India, Bangladesh, India including on Asian Clearing Union dues as well as the IMF. Year end net international reserves would still be negative.

Sri Lanka’s gross reserves are expected to rise by 2.5 billion US dollars to 4.4 billion US dollars in 2023 indicating that the country will lend 2.5 billion US dollars to the US and other highly rated borrowers. It may include re-invested interest coupons.

Sri Lanka is also expected to get 650 million dollars from the Asian Development Bank and 250 million dollars from the World Bank as part of partner support for the IMF deal. Outside of core monetary reserves linked to reserve money, balances in Treasury accounts are also counted as forex reserves.



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Future of Sri Lanka will be determined by the economic policies implemented over the next five years – President

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President Ranil Wickremesinghe emphasized that the future of Sri Lanka will be determined by the economic policies implemented over the next five years.

The President delivered this statement while addressing the youth and business community in Mannar during his participation in the “Youth Conference” held on  Sunday (16).

The President initially attended the Mannar District “Youth Conference” held at the Conference Hall in Mannar Town Hall. The conference, themed “Journey for a Bright Future,” included an award ceremony where the President presented certificates and cash prizes to students who excelled in the 2023/2024 G.C.E Advanced Level Examination.

President Wickremesinghe interacted directly with the youth, addressing their questions and providing positive responses.  He explained that over the past four years, job creation was hindered by the COVID-19 pandemic and economic crisis and he assured the audience that the upcoming economic program would create new job opportunities for those previously unable to secure employment.

The President emphasized that it is up to the youth to decide whether they wish to advance their own future and contribute to the country through the government’s program.

[PMD]

 

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President assures that persons on pilgrimage to Madhu will not be hindered

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Addressing the Mannar District Development Committee meeting held at the Mannar District Secretariat on Sunday (16), President Ranil Wickremesinghe said  that it is unfair to arrest and fine pilgrims on their way to sacred sites like Madhu Church and Sri Pada.and assured that pilgrims visiting  Madhu Church will be provided with all necessary facilities to engage in their pilgrimage activities without any hindrance.

He instructed that if pilgrims are arrested in the future, the President’s Office should be informed immediately.

During the meeting, the President directed the Sri Lanka Army to clean and develop both sides of the existing Madhu Road for the convenience of the pilgrims visiting Madhu Church. He also said that a representative of the Bishop of Mannar, the Department of Forest Conservation, the Road Development Authority and the Sri Lanka Police should coordinate to ensure that these tasks are completed before the upcoming annual festival of the church of Our Lady of Madhu.

The DDC meeting, which focused on the future development plans for the Mannar district was attended by Political representatives and government officials.

 

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Abandon selfishness and embrace a life of sacrifice and harmony to achieve spiritual and worldly success – President

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President Ranil Wickremesinghe, in his Hajj message emphasizes that to achieve spiritual and worldly success, individuals must abandon selfishness and embrace a life of sacrifice and harmony. It is with this noble aim in mind that Muslims celebrate the Hajj festival each year.

On this occasion, Muslims from around the globe gather at a single place of worship, united in purpose, to pray for communal values that embody the hope of humanity. The Hajj celebration fosters feelings of equality and brotherhood among all people, delivering a profound message for world peace.

I extend my heartfelt wishes to the entire Muslim community in Sri Lanka and around the world for a meaningful Hajj celebration, where everyone comes together to fulfill the aspirations of humanity.

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