economy: Last News

US assures support for Food Security

COLOMBO (News 1st) – The United States Permanent Representative to the UN Food and Agriculture Agencies in Rome, Ambassador Cindy McCain says support will be provided for Food Security and Sustainable Agriculture in Sri Lanka.The United States Permanent Representative to the UN Food and Agriculture Agencies in Rome, Ambassador Cindy McCain met with Agriculture Minister Mahinda Amaraweera at the Ministry of Agriculture, which also saw the participation of US Ambassador to Sri Lanka Julie Chang. Meanwhile, The United States Permanent Representative to the UN Food and Agriculture Agencies in Rome, Ambassador Cindy McCain, and US Ambassador to Sri Lanka Julie Chung met with the Secretary to the Minister of Foreign Affairs Aruni Wijeywaradane yesterday. US Ambassador Julie Chung noted the USA will continue its support to strengthen the economy of Sri Lanka. 

. economy Provident Assurant

Mahinda Amaraweera

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Canada’s rising prices becoming entrenched, recession may be needed: economists - - Canada
Canada’s rising prices becoming entrenched, recession may be needed: economists
inflation in Canada are likely to peak in the fourth quarter of this year, economists told Reuters, though most see signs fast rising prices are becoming entrenched and warn a recession may be needed to avoid a spiral.Canada’s inflation data for August will be released on Tuesday, with analysts forecasting the headline rate will edge down to 7.3 per cent, from 7.6 per cent in July and a four-decade high of 8.1 per cent in June.But all eyes will be on the three core measures of inflation – CPI Common, CPI Median and CPI Trim – which taken together are seen as a better indicator of underlying price pressures.The average of the three hit a record high of 5.3 per cent in July. Canada’s unemployment rate rose to 5.4% in August as interest rate hikes ‘bite’ Six of eight economists surveyed by Reuters see core inflation peaking in the fourth quarter as underlying domestic and global pressures start to ease, though the path back to the two per cent target will not be brisk.“Rapidly cooling growth, the pullback in housing prices, and less pressure on supply chains will help cap core inflation relatively soon,” said Doug Porter, chief economist at BMO Capital Markets.“However, we believe that it will be sticky, and will descend only slowly through 2023,” he added.The broadening of price increases, increased wage settlements, as well as rising consumer and business inflation expectations are signs that inflation is becoming more entrenched in the economy, economists told Reuters.
National Council to be debated on 20th Sept. - - Sri Lanka
National Council to be debated on 20th Sept.
COLOMBO (News 1st) – The resolution to constitute the Parliament Committee called the "National Council" has now been added to the Addendum to the Order Book for September 20th.Thus, the National Council will consist of the Speaker as the Chair, the Prime Minister, the Leader of the House of Parliament, the Leader of the Opposition in Parliament, the Chief Government Whip, and not more than thirty-five Members of Parliament representing the Ninth Parliament from recognized Political Parties in Sri Lanka as determined by the Leaders of the Political Parties.Accordingly, the National Council shall have the jurisdiction and general responsibilities in order to;• Determine the general priorities of Parliament to guide the formulation of short, medium, and long-term national policies;• Agree on short and medium-term common minimum programs in respect of the stabilization of the economy; • Arrange special meetings with the Ministers of the Cabinet of Ministers, the National Council, the Chairpersons of the Special Committees, and Youth observers of Youth Organizations.The National Council shall have powers to request reports from Sectoral Oversight Committees, The Committee on Public Finance, The Committee on Public Accounts, The Committee on Public Enterprises, The Committee on Banking and Financial Services, The Committee on Ways and Means, The Committee on Economic Stabilization; and Any Committee controlling Public Finance.The Addendum to the Order Book on the above can be obtain via the below link.
IMF Chief urges creditor countries to show leadership to enable debt relief - - China - India - Sri Lanka - state Oregon - Malawi
IMF Chief urges creditor countries to show leadership to enable debt relief
COLOMBO (News 1st); The Chief of International Monetary Fund (IMF), Kristalina Georgieva urged for large creditor nations such as China to show leadership and move rapidly to enable debt relief to countries such as Sri Lanka.Speaking to CNBC during her visit India, the IMF Chief said that about 25% of emerging market economies in distress, and Sri Lanka has been such a case for a long time. Pointing out that over 60% of low-income countries are at distress due to this, and even middle-income countries with strong fundamentals have fallen into a dire situation. What happened to these countries was that the frequency of shocks they faced increased, the IMF Chief said; "shock, upon shock, upon shock. Even countries with strong fundamentals, are becoming vulnerable," she said.Therefore, the lesson which should be learned is prudent fiscal policies, sound buffers and building resilience to shocks, Georgieva said.Referring to countries such as Malawi, IMF Chief Georgieva said that the country is experiencing a food shortage, a fuel shortage, and a debt crisis, which makes the entry of IMF even harder. "My message to the creditors, especially large creditors such sa China; 57% of loans to low-income countries is from China, or the private sector, which is even a bigger creditor, is that you have done a needy job to provide financial resources for growth, that is not necessarily bad.
Money printing fueling inflation; CBSL autonomy paramount – IMF Mission Chief - - Sri Lanka
Money printing fueling inflation; CBSL autonomy paramount – IMF Mission Chief
COLOMBO (News 1st); IMF Mission Chief for Sri Lanka Peter Breuer pointed out that the printing of money by the Central Bank of Sri Lanka to finance the government in the absence of any other creditors is fueling inflation.He told the BBC Sinhala Service that restoring the independence of the Central Bank and eliminating monetary financing will be a very important part to prevent rising inflation."We envisaged that the Central Bank Act, that ensures proper independence of the Central Bank, will be an important ingredient in restoring macroeconomic stability in Sri Lanka," said the IMF Mission Chief.USD 2.9 Billion is not too little, and not too late, said Peter Breuer, the IMF Mission Chief of Sri Lanka in Colombo.He told the BBC Sinhala Service that Sri Lanka has committed to a comprehensive set of economic reforms that will help put the economy back on a strong and durable growth trajectory, and this financing from the IMF will be available upon approval by the IMF Management and Executive Board.He said the Extended Fund Facility from the IMF will help catalyze other financings from other sources, other multilateral lenders, bilateral flows, and private flows, that will help restore confidence in the Sri Lankan economy and regain growth, etc.According to Peter Breuer, before the first tranche of the USD 2.9 Bn is disbursed, there are a number of matters that need to be addressed between the Staff-Level Agreement, and proposing a program to the IMF Executive Board."There are a number of prior actions agreed with the authorities, that they would undertake in order to continue with the economic reform that they have already started," he said citing the 2023 Budget which is consistent with the macroeconomic framework and
Ranil Wickremesinghe - President wants Sri Lanka to become export-oriented economy - - Usa - Sri Lanka - Britain
President wants Sri Lanka to become export-oriented economy
COLOMBO (News 1st); Sri Lankan President Ranil Wickremesinghe has accepted the IMF staff level agreement for US $ 2.9 Billion.President Ranil Wickremesinghe meeting with the IMF Delegation in Colombo on Thursday (1) said that this is an important step in the history of Sri Lanka. “Not only rising from the bankruptcy crisis and the debt moratorium, it is also key to ensure that our social sectors are protected and both our economic and social aspect of our lifestyle will certainly not have any further setbacks,” said the President.Accordingly, President Wickremesinghe noted that he considers this to be the beginning of a new economic era where the country is committed to a very competitive export oriented industry while maintaining and improving social standards as well as looking after the vulnerable groups.“The beginning will be difficult, but we know as we go on that we can make more progresses. Our commitment is what matters now and we should not only fulfill the targets here, but we must get ahead of them,” the President said, adding, “I appeal to the country, let us reorient ourselves to an export oriented economy which will also make it easier for us to sustain our social services.”He also said that it also should be a beginning for the fact that Sri Lanka should reduce its debts and if possible, even eliminate its debts.On a personal note, the President said, “I would like to say that when I was born, Sri Lanka had no debt and we had sufficient reserves to lend to the UK which was recovering from war times.
China’s achievements an inspiration for Sri Lanka: Ambassador Kohona - - China - Sri Lanka
China’s achievements an inspiration for Sri Lanka: Ambassador Kohona
COLOMBO (News 1st); The Ambassador of Sri Lanka to China, Palitha Kohona said that Sri Lanka has been inspired by China's achievements, and have to find its own strengths and work on them to become a country like China in the future.In an interview to Global Times, the Ambassador said that Sri Lanka currently is facing a myriad of challenges, and has many lessons to learn from China.Ambassador Kohona also pointed out that within the last decade, China has developed rapidly and has become the biggest source of foreign direct investment and the second biggest economy in the world, during which time, Sri Lanka's bilateral relations with China have expanded substantially and have prospered."Today, we hope that we can use these bonds to advance Sri Lanka's development," he said.According to the Ambassador, official and civil interaction between Sri Lanka and China over the last decade has covered a range of activities and projects in both countries, and both populations entertain a positive impression of each other.Ambassador Kohona, while mentioning that China has been a strong advocate of globalization, said that Sri Lanka has benefited from and firmly supports globalization, as globalized connectivity allows countries' exports to reach more lucrative markets easier."What China has done under the dedicated leadership for the Communist Party of China (CPC) is remarkable. It's unique.
NO change to CBSL policy rates - - China - Sri Lanka
NO change to CBSL policy rates
COLOMBO (News 1st); The Monetary Board of the Central Bank of Sri Lanka, at its meeting held yesterday (17) decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank at their current levels of 14.50% and 15.50%, respectively. In arriving at this decision, the Board considered the latest model-based projections, which point toward a larger than expected contraction in activity and a faster than expected easing of price pressures, compared to the previous monetary policy review. Contractionary monetary and fiscal policies already in place, alongside the measures to curtail non-urgent import expenditure, are expected to result in a notable contraction in credit to the private sector and possible upside risks to unemployment in the near term. The Board was of the view that despite headline inflation being projected to remain elevated in the near term, the policy measures taken by the Central Bank and the Government thus far would help contain any aggregate demand pressures, thereby anchoring inflation expectations, along with the anticipated decline in global commodity prices and its passthrough to domestic prices in the period ahead. Global economic growth is expected to slow at a faster pace As per the July 2022 update of the World Economic Outlook (WEO) of the International Monetary Fund (IMF), global economic growth is estimated to moderate to 3.2% in 2022 from 6.1 % recorded in 2021. Tighter financial conditions adopted by central banks around the world following the emergence of inflationary pressures, a slowdown in the Chinese economy due to the resurgence of COVID-19, among others, and further negative spillovers from the geopolitical tensions in