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State Minister Cabraal dispels fears about Sri Lanka’s debt service capacity

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State Minister of Money and Capital Markets and State Enterprise Reforms Ajith Nivard Cabraal has said nobody should harbour fears of Sri Lanka’s ability to service its debt. Fears being expressed in some quartes are unfounded he has said, issuing a media statement.

Following is a statement issued by the State Minister of Money & Capital Markets and State Enterprise Reforms Ajith Nivard Cabraal on 30th October 2020 “With the spread of the COVID-19 pandemic, all countries including Sri Lanka, observed a contraction in economic activity, reduction in foreign exchange earnings, decrease in revenue collection, and increase in health and welfare related expenditure. However, the prompt and measured policy support provided by the Government and the Central Bank enabled Sri Lanka to contain the unfavourable effects of Covid-19 to a great extent, and return the economy to near-normalcy by mid-May 2020. In fact, most economic activities have displayed a notable revival from May onwards, and this recovery is on-going. The recent detection of a new Covid cluster is now being decisively addressed by the Government, and this wave is also expected to be short-lived. Accordingly, the expansion of the fiscal deficit and the increase in debt levels in 2020, should not be generalised as a prolonged debt distress, but rather as a “one-off” deviation from the clear fiscal consolidation path that has been well articulated in the new Government’s policy framework.

“The election of a new President in mid November 2019 and the formation of a single-party Government with a sizable majority in August 2020, has enable the new Government to address the uncertainties in the political and policy spheres observed during the period 2015 to 2019. Consequently, Sri Lanka has been able to address public health concerns swiftly, as well as take difficult economic decisions with greater confidence. For example, when the Government was of the view that it was necessary to conserve forex, given the likelihood of low foreign exchange earnings due to the pandemic, and the need to prioritize foreign debt service obligations, the Sri Lankan authorities imposed restrictions on non-essential imports from March 2020. Such decisive and bold action, along with the reduction in global petroleum prices, resulted in a substantial saving of nearly US$ 3 billion in terms of expenditure on merchandise imports in the first nine months of the year, compared to the same period of the previous year. This saving, along with the better-than-expected outcomes in terms of merchandise exports, services exports other than tourism, and workers’ remittances, is now projected to compress the external current account deficit to below 1.5% of GDP in 2020.

“It would also be noted that capital flows and official reserves were also affected during the early months of the global outbreak of Covid-19. However, growing business confidence due to decisive action by the Government and the Central Bank has enabled the country to stabilize the exchange rate with only a marginal depreciation of around 1.5% so far this year, even while the Central Bank was able to purchase/absorb US$ 300 million from the domestic foreign exchange market during the year. As a result, official reserves remain close to US$ 6 billion, after settling foreign debt service repayments of around US$ 4 billion thus far during the year, including the repayment of the matured International Sovereign Bond of US$ 1 billion in October 2020. In the meantime, it would be further noted that the Sri Lankan authorities are presently negotiating a loan of USD 700 million from the China Development Bank which is expected to be at an interest rate and terms of repayment that are significantly more favourable than the USD 1 billion Sovereign Bond that was just re-paid. In addition, an attractive, exchange rate risk-free, Forex SWAP facility has been introduced for any foreign investor who invests in Sri Lankan government securities, which is expected to boost foreign exchange inflows particularly from the Middle-East, in the period ahead.

 

“In terms of growth performance, Sri Lanka is once again set to embark on a growth path, following the setback in the first half of 2020 caused by the pandemic. The formulation of the new Government Cabinet and State Ministerial structure, with clear performance indicators has been geared towards improving the efficiency and effectiveness of the economy. These new governance structures are bound to enhance agriculture and agro-based and mineral-based industries, increase export opportunities, as well as facilitate large projects within the Port City, Hambantota Port, and dedicated industrial zones. The expected revitalization of state owned enterprises, together with the private sector-led growth projects would also revert the Sri Lankan economy to the high growth path that was observed prior to 2015 whereby annual growth rates of over 6.5% were regularly recorded.

“In the meantime, Sri Lanka’s entire local debt stock of about Rs. 7.7 trillion (USD 42 billion) as at end July 2020 is being rolled-over and re-priced now at interest rates which are almost half of what was paid in 2019, while the Rupee remains stable. It may also be noted that a new trend has been established where greater reliance is being placed on domestic financing, and that strategy has already improved the “domestic: foreign” ratio of the debt from 51:49 at end 2019 to 56:44 now, which trend the authorities are keen to improve further in the period ahead. It is therefore clear that the Government’s commitment and support towards better debt management, both directly and indirectly, has already started to take effect.

“Sri Lanka is justifiably proud of its immaculate debt service record, without a single default. It would also be noted that Sri Lanka has experienced similar challenging circumstances previously, with high levels of debt. For instance, during 2001-2004, the country’s debt to GDP ratio was well over 100%, and by end 2005, it was at 91%. Nevertheless, Sri Lanka was able to gradually reduce the debt to GDP ratio to just 72% by end 2014 through decisive and innovative action.”



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Navy seizes 02 Indian fishing boats poaching in northern waters

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During an operation conducted in the dark hours of  the 15th  and wee hours of 16th  February 2026, the Sri Lanka Navy seized two (02) Indian fishing boats and apprehended twenty five (25) Indian fishermen while they were poaching in Sri Lankan waters, off Kankesanthurai, Jaffna.

The two seized boats and the 25 Indian fishermen  will be handed over to the Fisheries Inspector of Myliddy, Jaffna for onward legal proceedings.

 

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Ramadan 2026: Fasting hours around the world

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The Muslim holy month of Ramadan is set to begin on February 18 or 19, depending on the sighting of the crescent moon.

During the month, which lasts 29 or 30 days, Muslims observing the fast will refrain from eating and drinking from dawn to dusk, typically for a period of 12 to 15 hours, depending on their location.

Muslims believe Ramadan is the month when the first verses of the Quran were revealed to the Prophet Muhammad more than 1,400 years ago.

The fast entails abstinence from eating, drinking, smoking and sexual relations during daylight hours to achieve greater “taqwa”, or consciousness of God.

Why does Ramadan start on different dates every year?

Ramadan begins 10 to 12 days earlier each year. This is because the Islamic calendar is based on the lunar Hijri calendar, with months that are 29 or 30 days long.

For nearly 90 percent of the world’s population living in the Northern Hemisphere, the number of fasting hours will be a bit shorter this year and will continue to decrease until 2031, when Ramadan will encompass the winter solstice, the shortest day of the year.

For fasting Muslims living south of the equator, the number of fasting hours will be longer than last year.

Because the lunar year is shorter than the solar year by 11 days, Ramadan will be observed twice in the year 2030 – first beginning on January 5 and then starting on December 26.

INTERACTIVE - Ramadan 2026 33 year fasting cycle-1770821237
(Al Jazeera)

Fasting hours around the world

The number of daylight hours varies across the world.

Since it is winter in the Northern Hemisphere, this Ramadan, people living there will have the shortest fasts, lasting about 12 to 13 hours on the first day, with the duration increasing throughout the month.

People in southern countries like Chile, New Zealand, and South Africa will have the longest fasts, lasting about 14 to 15 hours on the first day. However, the number of fasting hours will decrease throughout the month.

INTERACTIVE - Fasting hours around the world-1770821240

[Aljazeera]

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We will not allow anyone to drag the country backward by inciting racism. — PM

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Prime Minister Dr. Harini Amarasuriya stated that no one will be allowed to drag the country’s future backward by inciting racism, and emphasized that women must step forward to carry forward the change that has been initiated.

The Prime Minister made these remarks while addressing the Mannar District Women’s Meeting held on Sunday [15 th of February] in the Adampan area of the Mannar District.

Speaking further, the Prime Minister stated:

“You know that our government has brought about a change in women’s representation. According to statistics, about 52% of the population are women. That means women constitute a powerful segment of our country’s population. However, when we consider various sectors and the challenges faced in daily life, the question remains whether this power is reflected in practice.

One of the main problems our country faced was war and violence, which caused us to view one another with distrust. As a result, we truly became a divided nation. Consequently, women were the ones who suffered the most. We know that many women in this country have endured immense suffering after losing their mothers, fathers, sons, daughters, brothers, and sisters. We are aware that many such women live in this region as well. Although the war ended a long time ago, peace has still not taken root in people’s hearts. Even today, there are women who do not know what happened to their family members. There are many women who struggle alone to protect and sustain their families.

Our government is committed to go against racism. We believe that everyone in this country should be able to live safely with equal rights. However, racist groups are still attempting to create divisions among people. They are not interested in stopping corruption, protecting democracy, ensuring the equal application of the law, or strengthening the economy. Their only objective is to gain power, not for the benefit of the people, but for themselves.

We know how much they have destroyed this country’s resources. In 2022, the country faced a massive economic collapse. But by 2025, our government was able to strengthen the economy by putting an end to theft, corruption, and waste. That is why, when Cyclone Ditwah struck, we were able to assist the people without borrowing loans.

Recently, for the first time in 21 years, we were able to distribute profits of the Milco institution among dairy farmers. Within about a year, by increasing revenue streams and minimizing waste in institutions, we were able to share profits.

We are rebuilding institutions which have fallen apart putting an end to fraud and corruption, stopping the waste, and ensuring that the benefits reach the people. Yet, some are attempting to take the country backward by stirring up racism.

Women are among those most affected by racism. Should we allow ourselves to be divided again and let discord rise? No. That is why women’s leadership is essential. To carry forward the change we have begun, women must step forward. There is still much work to be done. We will not allow our forward journey to be reversed.

One of the major challenges we face today is the drug menace. We fear for our children becoming victims of drugs, and as a result, family disputes have increased. People are afraid to go out or leave homes due to drug addicts. The President has made a special commitment to eradicate harmful drugs from the country. Those who were in power previously provided protection to these groups, preventing the police from enforcing the law properly. Today, we have instructed the police to enforce the law correctly. The police can now perform their duties properly, and the judiciary is delivering independent decisions. If a crime is committed, punishment must follow. The law is equal for everyone. We are aware that there are still areas where the law is not properly enforced.

There are still women and children who suffer from violence and abuse. The law must be more effective in ensuring the safety of women and children. We are increasing judicial capacity and taking steps to address such cases more swiftly.

Mothers make great sacrifices with faith in their children’s education. That is why we are working to provide quality education to all children. After five years, we are recruiting graduate teachers this year, and they will definitely be assigned to schools with vacancies. Proper appointments of principals had not been made earlier; we began filling these vacancies last year. Alongside this, we are developing school infrastructure. There is no distinction between big schools and small schools. Every school belongs to our children.

We are developing one school in each division and have informed District Development Committees to nominate those schools. We are also working to establish smart classrooms in every secondary school. In addition, from this year, education for Grade One has commenced under a new curriculum.

We came to power to rebuild this country, and we must do so. Women contribute significantly to the economy, yet they receive the lowest wages. Women have achieved high progress in all sectors. Therefore, when women engage in self-employment from home or participate in the workforce, facilities must be created to ensure the safety and care of their children”

The occasion was attended by the Member of Parliament Jegatheeswaran, along with municipal and divisional council representatives and a large number of women.

[Prime Minister’s Media Division]

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