Connect with us

News

Sri Lanka defaults on entire external debt amid economic crisis

Avatar

Published

on

Sri Lanka’s Finance Ministry said creditors, including foreign governments, were free to capitalise any interest payments due to them or opt for payback in Sri Lankan rupees.

Crisis-stricken Sri Lanka has defaulted on its $51 billion external debt after running out of foreign exchange to import desperately needed goods.

“The government is taking the emergency measure only as a last resort in order to prevent further deterioration of the republic’s financial position,” Sri Lanka’s finance ministry said in a statement on Tuesday.

It added that the immediate debt default was to ensure “fair and equitable treatment of all creditors” ahead of an International Monetary Fund (IMF)-assisted recovery programme for the South Asian nation.

“It has come to a point that making debt payments are challenging and impossible. The best action that can be taken is to restructure debt and avoid a hard default,” central bank Governor P. Nandalal Weerasinghe told reporters.

The governor said the action was being taken in good faith, emphasising that the country of 22 million people had never defaulted on its debt payments.

“This will be on a temporary basis until we come to an agreement with creditors and with the support of a programme with the IMF,” said Weerasinghe, who took office last week amid growing public unrest triggered by the economic crisis.

“We need to focus on essential imports and not have to worry about servicing external debt,” he said.

READ MORE: Protesters occupy Sri Lankan president’s office entrance for second day

Crippling crisis

Sri Lanka is grappling with its worst economic downturn since independence, with regular blackouts and acute shortages of food and fuel.

International rating agencies had downgraded Sri Lanka last year, effectively blocking the country from accessing foreign capital markets to raise much-needed loans to finance imports.

Sri Lanka had sought debt relief from India and China, but both countries instead offered more credit lines to buy commodities from them.

The island nation’s foreign reserves stood at a paltry $1.93 billion at the end of March, with foreign debt payments of around $4 billion due this year, including a $1 billion international sovereign bond maturing in July.

READ MORE: ‘Herculean task’: Sri Lanka seeking $3B to stave off economic crisis

 

Source: TRTWorld

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

News

Fushidhiggaru project ongoing, will finish on time: Government

FI

Published

on

By

The Maldives government on Sunday assured Fushidhiggaru reclamation project, a key initiative under the vision of President Dr. Mohamed Muizzu, has not stalled and would be completed on the scheduled date.

President’s Office Chief Spokesperson Heena Waleed confirmed this on Sunday at a press conference, while providing details on other government initiatives.

The state has responded about the large-scale development project amid speculation in social media and by political opponents, claiming the initiative has stalled.

In response, Heena highlighted that the sand dredging in the project is currently on pause, stressing this was not indicative of the entire project being halted.

“I would like to ask, if they gauge the ongoing status of a capacity based on whether sand dredging is ongoing or not. Although sand dredging has stopped, there would be several other associated components of the project that requires attention and execution,” Heena commented.

She further said the project requires administrative and other work, all of which, she added, were ongoing.

“In response, I would like to reply that the Fushidhiggaru project has not stalled, it is ongoing. The project would conclude as per the scheduled date announced by the President,” she said.

Under the large-scale development project, 1,153 hectares of land will be reclaimed, which is thrice the combined size of Hulhumale’ Phase I and II.

The iniatiative commenced officially on December 18, 2023 while the Maldives President assured the reclamation component will conclude within eight months from the date of commencement.

Source(s): sun.mv

Continue Reading

News

Efforts underway to submit new laws to Parliament

FI

Published

on

By

Chief Spokesperson at the President’s Office Heena Waleed has stated that efforts are underway to complete the administrative preparations for introducing new laws and amendments to the Parliament, with the government achieving a super majority in the parliamentary elections.

Heena stated there are several crucial laws to be presented to Parliament under the government’s week-14 legislative agenda. As such, laws relating to housing, the criminal justice system, social security are to be submitted. On this stance, Heena affirmed that the laws and amendments which have been stalled in the committee phase will be given a top priority to be implemented by the end of President Dr. Mohamed Muizzu’s tenure.

Furthermore, Heena revealed that over 200 laws are to be implemented, aiming to fulfill President Dr. Muizzu’s commitment outlined in the government’s manifesto. She assured that the elected Parliament will play a significant role as their views align with that of the president.

Observing that the government attained a super majority during the parliamentary elcetions was due to the unwavering trust in President Dr. Muizzu, Heena affirmed that this advantage will not be exploited. She guaranteed that the super majority will assist the government in implementing and enforcing policies that will benefit the public as per the respective policies.

Source(s): PsmNews

Continue Reading

News

Islamic Minister discusses expanding Zakat House

FI

Published

on

By

Minister of Islamic Affairs Dr. Mohamed Shaheem Ali Saeed has met with the Director General of Zakat House Director Dr. Majid Sulaiman Al-Azimi to discuss upgrading the Maldives Zakat House.

The minister confirmed this via X (formerly Twitter), highligting that the two discussed about expanding the services of the Zakat House, including staff and Sharia Board training, and the legal requirements of Zakat recipients.

Earlier, the minister announced the administration’s plan to introduce a financial aid system to extend aid to orphans permanently. Dr. Shaheem said orphans will receive financial support annually until adulthood.

However, the minister did not specify how much the government intended to provide as financial support each year.

The current administration established the Maldives Zakat House with the objectives of increasing public awareness on the importance of paying Zakat, and foster love among the public towards the Islamic sacred act.

Under the Zakat Fund, government provided financial support to 52 individuals earlier in March 2024.

Statistics recently provided by the Zakat House showed the fund had been disbursed mainly in four areas, which are;

For Cancer Treatment – MVR 190,822.50
Brain Surgery – MVR 180,407.19
Heart Surgery – MVR 8,482.00
Transplants – MVR 25,443.00

Additionally, another MVR 227,872.50 was disbursed for various other areas.

Source(s): sun.mv

Continue Reading

Trending