Full Story: Fitch Affirms Sri Lanka at Restricted Default; Policy Uncertainty Following Elections

Fitch Ratings has affirmed Sri Lanka’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘RD’ (Restricted Default) and Long-Term Local-Currency IDR at ‘CCC-‘. Fitch typically does not assign Outlooks to issuers with a rating of ‘CCC+’ or below. A full list of rating actions is at the end of this rating action commentary. Key Rating Drivers Restructuring Negotiations Ongoing: The sovereign remains …

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Discussions with Private Bondholders Successful

President Ranil Wickremesinghe emphasized that discussions with private bondholders have successfully concluded, marking a significant step in freeing the country from bankruptcy. He further stated that an official acknowledgment of Sri Lanka’s recovery from bankruptcy is expected soon, along with the swift implementation of plans to advance the country. The President made these remarks during a meeting with the Executive …

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Sri Lanka Purchasing Managers’ Index (Manufacturing and Services) – August 2024

Purchasing Managers’ Indices indicate expansions in both Manufacturing and Services activities in August 2024. Sri Lanka Purchasing Managers’ Index for Manufacturing (PMI – Manufacturing) recorded an index value of 55.5 in August 2024. This indicates an expansion in manufacturing activities,yet at a slower rate compared to the previous month. All the sub-indices, except for Employment, remained above the neutral threshold …

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Sri Lanka Reaches in Principle Agreements for Restructuring Sovereign Debt with External Commercial Creditors

On the 19th of September 2024, Sri Lanka announced that it has reached Agreements in Principle on the restructuring of approximately USD$ 17.5 billion of external commercial debt (as of end 2023). These agreements have been reached with holders of its International Sovereign Bonds, following negotiations with the Ad Hoc Group of Bondholders (“AHGB”), a representative group of international investors, …

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Sri Lanka Reaches in Principle Agreements for Restructuring Sovereign Debt with External Commercial Creditors

On the 19th of September 2024, Sri Lanka announced that it has reached Agreements in Principle on the restructuring of approximately USD$ 17.5 billion of external commercial debt (as of end 2023). These agreements have been reached with holders of its International Sovereign Bonds, following negotiations with the Ad Hoc Group of Bondholders (“AHGB”), a representative group of international investors, …

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CANTON FAIR ORGANIZERS VISITED EDB TO SCALE UP TRADE RALATIONSHIP BETWEEN CHINA AND SRI LANKA

A delegation from the Canton Fair Operations Department of China visited Sri Lanka Export Development Board (EDB) on 30th August 2024 to scale up trade relationship between the two countries through participating at trade promotional events such as Canton Fair 2024.   China is the 10th export destination for Sri Lanka in 2023. The total export value from Sri Lanka …

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Mirai Consulting Group Explores Investment Opportunities in Sri Lanka

A high-level delegation from Mirai Consulting Group, Japan, recently visited Sri Lanka to explore potential investment opportunities in various sectors. The delegation, led by Okada Atsushi, COO of Mirai Consulting Group, met with the EDB Chairman at the EDB headquarters. The purpose of the visit was to identify industries that aligned with the investment interests of Japanese companies and to …

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EDB and KPMG Sri Lanka collaborated to create awareness on new EU Regulations for Environmental, Social, and Governance (ESG) Factors

Export Development Board (EDB) and KPMG Sri Lanka jointly organized a knowledge-sharing session on the new European Union (EU) regulations concerning Environmental, Social, and Governance (ESG) factors on 11th September 2024. The session took place at the auditorium of the Postgraduate Institute of Management (PIM), with around 200  Sri Lankan export companies. The European Union has introduced regulations that will …

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Sri Lanka Not Out of the Woods Yet -Must Safeguard Hard-Won Gains- IMF

The International Monetary Fund (IMF) has cautioned that while Sri Lanka has made notable progress in its economic recovery, the nation is still vulnerable and must work to protect the hard-earned gains it has achieved so far. Speaking at an IMF press briefing on September 12, Director of the IMF Communications Department Ms. Julie Kozack, emphasized the importance of sustained …

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Sri Lanka Lifts Import Restrictions on Motor Vehicles Effective October 1, 2024

In a significant move the government has announced the lifting of the temporary suspension on motor vehicle imports, effective October 1, 2024. This decision comes after over four years of stringent import restrictions that were initially imposed to safeguard the country’s foreign exchange reserves during the economic crisis. The import ban, introduced in March 2020, was aimed at curbing the …

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