Fitch Ratings Hong Kong says that the Sri Lankan authorities’ confirmation that they endorse the targets set under the country’s IMF programme, and intend to implement debt restructuring based on the terms agreed with international sovereign bondholders in September, reduces risks to the debt treatment process associated with the outcome of the presidential election on 21 September.

The election of Anura Kumara Dissanayake, of the opposition Janatha Vimukthi Peramuna (JVP), as president in September had increased policy uncertainty, raising the risk that the government could launch challenges to key elements of the IMF programme, potentially delaying Sri Lanka’s foreign currency debt restructuring. However, the Ministry of Finance announced on 4 October that consultations with the IMF and Sri Lanka’s Official Credit Committee had been successfully concluded, suggesting that any policy changes are unlikely to threaten the IMF programme or the debt treatment agreement-in principle reached under the previous administration.

The Ministry also indicated that the consultation had agreed that the preliminary agreement adhered to the principle of comparability of treatment between official creditors and bondholders, and was compatible with the IMF programme’s terms.

” We view this as a positive sign for the restructuring process’s prospects. Fitch has rated Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘RD’ (Restricted Default) since May 2022, and the government is not currently servicing its foreign-currency debt. We may move the IDR out of ‘RD’ upon the sovereign’s completion of a commercial debt restructuring that we judge to have normalised the relationship with the international financial community. Sri Lanka’s postdefault rating would depend upon our assessment of its credit profile. Fitch upgraded Sri Lanka’s LongTerm Local-Currency IDR to ‘CCC-‘ in September 2023, reflecting the completion of the local-currency portion of Sri Lanka’s domestic debt optimisation plan. We expect Sri Lanka’s government debt to remain relatively high, even if debt restructuring is completed successfully along the lines laid out in the agreements with its creditors,” Fitch says.

“The IMF forecasts Sri Lanka’s gross general government debt/GDP ratio to decline only gradually to about 103% of GDP by 2028, from about 116% in 2022, after building in a local- and foreign-currency debt restructuring. The government’s revenue/GDP ratio remains low, but the effects of several revenue-raising measures passed since May 2022 are beginning to be felt. Revenue collection in 7M24 rose by about 43% yoy, well above the nominal GDP growth rate of 9.5% in 1H24. Our baseline projections assume an increase in revenue/GDP, from 11.4% in 2023 to 15.5% in 2026, reflecting the measures already in place. However, these forecasts could be affected, if the new government introduces fiscal reforms. The IMF programme’s targets offer some flexibility for changes in the government’s fiscal policy approach.

‘The president’s capacity to push through policy changes may depend partly on the outcome of the parliamentary election on 14 November. The JVP and its allies had relatively few seats in the outgoing legislature, though the trends evident in the recent presidential election suggest that there will probably be large changes in the make-up of the new chamber.

‘The economy more broadly remains on a recovering trend. Real GDP growth was 5.0% yoy in 1H24, after contracting by 7.3% during 1H23. We expect the economy to expand by 3.9% in 2024 and to average growth of 3.6% over 2025-2026. External liquidity stresses have also eased, with foreign-exchange reserves hitting USD6.0 billion in August 2024, up almost 66% yoy. Nevertheless, the speed of the recovery in reserves is likely to be set back when Sri Lanka resumes external debt-service payments,” Fitch notes.

October is Breast Cancer Awareness Month—a time to come together not only to acknowledge a disease that affects millions but to celebrate the resilience of women and the power of early detection to save lives.With a long-standing partnership of 20 years with the National Cancer Control Programme, Rotary Club of Colombo members came out in their numbers to create awareness and joined the recent NCCP Breast Cancer Awareness Walk on October 2nd.

It is a time to reaffirm our collective responsibility toward the well-being of our mothers, sisters and daughters and those thousands of women who may one day be struck down by this disease if not detected early.

Rotary has been a beacon of hope in the fight against breast cancer, working hand-in-hand with the Ministry of Health for 20 years since 2004. This partnership with the National Cancer Control Programme has been instrumental in addressing breast cancer, which remains the leading cause of death among women aged 40 to 55 years.

Rotary’s journey began 20 years ago with the sole focus on screening and early detection and prevention to fight the rising incidence of cancer. Together with NCCP they set up a dedicated Cancer Screening and Early Detection Centre focused on breast cancer, first in Colombo and then extended to other cities to ensure no woman is left behind. These regional Breast Cancer Early Detection Clinics will bring lifesaving services closer to those who need them most.

Rotary Club of Colombo has led the way in the screening and early detection of breast cancer and invested in state-of-the-art technology at the main Cancer Early Detection Centre in Narahenpita run by NCCP, including installing a 3D tomosynthesis Digital Mammography Machine. This machine provides highly accurate screenings for breast cancer, five days a week, entirely free of charge. This represents Rotary’s unwavering commitment to ensuring early detection, which is key to improving breast cancer survival rates.

Rotary Club of Colombo was also a pioneer in introducing HPV DNA testing at the Centre for cervical cancer screening —an initiative that highlights their approach to tackling women’s cancers holistically.

Union Assurance, Sri Lanka’s premier Life Insurer, continues to strengthen its Bancassurance partnership with Union Bank through a series of exclusive customer forums. The latest forums held in Jaffna and Matara brought together over 100 Union Assurance customers within the Union Bank Bancassurance Channel along with new-to-bank customers.

Designed to enhance the overall customer proposition, these forums focused on enriching customer financial well-being through valuable insights. With the delivery of practical knowledge and actionable strategies, Union Assurance aimed at educating customers to make informed financial decisions, thereby empowering their unique journeys of progress. In addition, these forums offered customers the opportunity to engage directly with the senior management from both Union Assurance and Union Bank, facilitating meaningful networking while strengthening relationships between the organisations.

Commenting on the forums, the Chief Partnership Distribution Officer at Union Assurance, Wathsala Aluthgedara stated, “The customer forums are a manifestation of Union Assurance’s long-standing commitment to setting benchmarks in the Bancassurance sector by providing platforms that constantly support our customers to enrich their well-being. We are pleased to collaborate with Union Bank, one of our long-standing partners to host these forums, delivering a comprehensive suite of offerings that benefit our shared customers.”

The Senior Vice President Retail Banking at Union Bank, Chaya Jayawardane stated, “Union Assurance has consistently delivered comprehensive, one-stop-shop solutions that greatly benefit our customers and we are thrilled to continue our Bancassurance partnership with them. By supporting initiatives that enhance financial literacy, we recognise the significant impact these educational forums have on our customers’ financial health. These initiatives highlight our shared commitment to delivering exceptional value and enhancing customer relationships.”

Union Assurance is a subsidiary of John Keells Holdings PLC (JKH), the largest conglomerate listed on the Colombo Stock Exchange, operating with over 70 companies in 7 diverse industry sectors. The Company has completed over three decades of success with a Market Capitalisation of Rs. 28.6 Bn and a Life Fund of Rs. 71.6 Bn as of end June 2024. Set to protect lives and enrich the well-being of all Sri Lankans, Union Assurance offers Life Insurance solutions that cover the health, investment, protection, retirement and education needs of Sri Lankans. With an island-wide branch network and a workforce that is over 3000-strong, Union Assurance continues to invest in people, products and processes with a customer-centric focus to be responsive to emerging changes in the Life Insurance industry.