FIscal Policy

SriLanka’s foreign Reserves falls to record low levels

8Dec

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Economy, External Account, FIscal Policy

SriLanka’s foreign Reserves falls to record low levels

Sri Lanka's gross foreign reserves fell to $5.54 billion, the lowest levels seen since April 2017. Amidst, COVID-19 infused crisis, the foreign exchange flows through exports and tourism declined to the country while the existing reserves were utilized for foreign debt settlements including a $1 billion ISB settlement in October. In November, the country's gross foreign reserve fell to 5.549 billion from $5.855 billion in October. The Previous lowest reserve level was recorded in April 2017 at $ 5.045 billion.

Sri Lanka’s gross financing requirements top $20 billion next year – EMFI Securities

4Dec

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Economy, Finance and Leasing, FIscal Policy

Sri Lanka’s gross financing requirements top $20 billion next year – EMFI Securities

Sri Lanka's gross financing needs are projected to top $20 billion next year, a 22.3 percent increase compared to this year, according to EMFI Securities. London-based Financial Provider in a recent report said that the government may have underestimated current expenditures (mostly salaries and wages) and overestimating revenues. Therefore, it projected that the country's gross financing requirement to increase to 22.3% of GDP in 2021 (or USD 20.9 bn), by two percentage points of GDP higher than in 2020. Further, it highlighted that Sri Lanka's external debt service payments amount to a 'very compromising' $ 4.2 bn in 2021, which represents 71% of its international reserves.