Sri Lanka

Economics

Sri Lanka did not reach an agreement with its bondholders regarding the restructuring of approximately $12 billion in debt, Nikkei Asia reported on April 16. 

Sri Lanka: Government Fails To Reach Agreement With Bondholders on Debt Restructuring

India

Military & Security

Politics

Sri Lanka's Foreign Minister Mohamed Ali Sabry said there is no need to reopen discussions on Sri Lanka's Katchatheevu island, which India ceded 50 years ago, given the matter was resolved then and no inquiries regarding a change in its status have been raised thus far, Reuters reported on April 4.

India, Sri Lanka: Sri Lanka Brushes Off Indian Criticism Regarding Ceded Island

The International Monetary Fund declared a staff-level agreement with Sri Lanka following a second review of the country's $3 billion, four-year bailout program, Reuters reported on March 21.

Sri Lanka: IMF Reaches Staff-Level Agreement Following Second Review

China

Indonesia

Japan

Malaysia

Philippines

Vietnam

Japan is following up on previous commitments to the Philippines, Indonesia, Malaysia and Vietnam by drawing up a new 10-year plan to supply these countries with sustained military assistance through its Official Security Assistance program, or OSA, the South China Morning Post reported on Feb. 13.

Japan, ASEAN: Tokyo Drawing Up 10-Year Plan To Help ASEAN Maritime Countries

Sri Lanka prohibited Chinese research vessels from docking in its ports for one year, The Maritime Executive reported on Jan. 2.

Sri Lanka: Port Prohibition on Chinese Research Ships Illustrates Multi-Aligned Foreign Policy

For the first time in four years, Sri Lanka's government recorded more than one million tourist arrivals, with 1.3 million tourists visiting the country in 2023 through the second week of December, Al Jazeera reported on Dec. 19.

Sri Lanka: Critical Tourism Industry Rebounds as IMF Reforms Loom

Bangladesh

The International Monetary Fund's executive board approved the second tranches of Sri Lanka's and Bangladesh's bailouts, $337 million and $690 million, respectively, Bloomberg reported on Dec. 12.

Sri Lanka, Bangladesh: IMF Approves Second Installment of Bailout Funds

Sri Lanka's government announced an agreement in principle with its official creditor committee, which includes India and the Paris Club, to restructure some $5.9 billion of outstanding public debt, AP reported on Nov. 29.

Sri Lanka: Government Announces In-Principle Agreement With Official Creditors on Debt Restructuring

Assessments

(From left to right) Peter Breuer, International Monetary Fund (IMF) Mission Chief for Sri Lanka, speaks next to Krishna Srinivasan, the Director of the IMF's Asia and Pacific Department, during a press conference in Colombo, Sri Lanka, on May 15, 2023. 

The IMF will likely approve the next tranche of Sri Lanka's $2.9 billion bailout. But if Colombo fails to reach a deal with its bondholders in the coming months, future disbursements may be at risk.

What's at Stake As Sri Lanka Struggles To Restructure Its Debt

The International Monetary Fund (IMF) headquarters building is seen in Washington, D.C. 

To keep the country's economic recovery on track, Colombo will likely seek to unlock the delayed next tranche of its bailout package by enacting more reforms, though this risks public backlash.

What's Next for Sri Lanka After Its Failed IMF Review?

Media

Pakistan

Graphics

A man enters a foreign currency exchange shop in Islamabad, Pakistan, on July 11, 2023.

Inflation remains high in several South Asian countries amid political and economic constraints on reform.

Inflation Rates Across South Asia

Maldives

International Monetary Fund representative Rahul Anand (center) speaks during a press conference in Dhaka, Bangladesh, on Nov. 9, 2022. 

Bangladesh, Sri Lanka and the Maldives all face varying degrees of financial and economic risks in the years ahead unless they enact far-reaching (and politically unpopular) reforms.

Where Are South Asia's Most Vulnerable Economies Headed?

Snapshots

Supporters of the opposition National Peoples Power (NPP) take part in a protest in Colombo, Sri Lanka, to urge the government to hold local elections as scheduled on Feb. 26, 2023. 

The delayed ballot will offer a key glimpse into the country's political climate since last year's mass protests, and could weaken its new government's ability to enact IMF-mandated reforms.

The Significance of Sri Lanka's Upcoming Local Elections

China's ambassador to Sri Lanka (left) gestures upon the arrival of China's research and survey vessel, the Yuan Wang 5, at the Hambantota port on Aug. 16, 2022. 

As Beijing and New Delhi's rivalry intensifies, Colombo's attempts to maintain ties with (and financial aid from) both regional powers increasingly risks backfiring on the cash-strapped island nation.

For Sri Lanka, India's Anger Over a Chinese Ship Visit Highlights a Foreign Policy Dilemma

A vendor holds a newspaper with Sri Lanka's President-elect Ranil Wickramasinghe on the front page at a newsstand in Colombo on July 21, 2022. The six-time prime minister was sworn in as president later that day.

Wickremesinghe’s controversial ties to his ousted predecessor will impede his ability to appease protesters and lead the South Asian country out of its economic crisis.

In Sri Lanka, a New President Emerges From the Fray. Is He Up to the Task?

Columns

On Security

Opposition activists outside Sri Lankan Prime Minister Ranil Wickremesinghe's private residence on June 22, 2022, in Colombo, Sri Lanka.

Social Issues

Security

By focusing on an immediate demand to force out an unpopular government, protesters could be setting themselves on an uncertain and potentially dangerous new course.

Why What Happens Next in Sri Lanka May Be More Dangerous

Guidance

Zambia

Iran

Syria

Turkey

Italy

Russia

A protester waves Sri Lanka's national flag outside the presidential palace in Colombo on July 13, 2022. 

Russia-Ukraine Conflict

A look at what the coming week will bring -- and a list of recommended RANE articles from the week that was.

The Weekly Rundown: Sri Lanka Picks a New President, a Russia-Turkey-Iran Summit

Anti-government protesters gather outside the presidential palace in Colombo, Sri Lanka, on July 9, 2022.

Energy

The president and prime minister’s resignations may briefly restore order, but the need for austerity measures could collapse the next government and spur new bouts of unrest.

Amid Mounting Protests and Economic Turmoil, Sri Lanka’s Leaders Call It Quits

Chinese Foreign Minister Wang Yi holds a press conference with his Pakistani counterpart (not pictured) in Beijing, China, on Sept. 8, 2017. 

Beijing's hesitance to fully bail out Pakistan, one of its closest partners, bodes ill for the growing number of developing countries seeking debt relief.

Facing Economic Issues at Home, China Scales Back Its Foreign Debt Assistance

Podcasts

What led to the current economic situation in Sri Lanka?

 Essential Geopolitics: What's Happening in Sri Lanka?

The island of Sri Lanka lies twenty miles off the southeastern tip of India. Slightly smaller than Ireland, the country sits at the center of the Indian Ocean, just northeast of the Maldives island chain.     Sri Lanka is divided into two geographic zones.     The southwest of the island is Sri Lanka's core. It consists of the inland Central Highlands, flanked to the west by Colombo's seaside lowlands. This area receives most of the island's rainfall and is the country's agricultural heartland, producing rice for food consumption and its cash crops: coconut, tea and rubber. It also contains the island's gem and graphite deposits. Colombo has a deep natural harbor, which receives substantial traffic from nearby shipping lanes.      The northern part of the island is divided into the inland Vanni region and the Jaffna Peninsula on Palk Bay. The north is dry and agriculture is only possible because of large, ancient reservoirs. Fishing is the primary economic activity. The north is connected to India by a chain of islands and sandbars known as Adam's Bridge, which has historically eased the movement of goods and people to and from the mainland.      Sri Lanka's main geographic challenge is to protect its core around Colombo, while promoting integration with the north. The most recent challenge to Colombo's dominance was from the Tamil Tigers insurgent group, who used the Vanni region and Jaffna peninsula regions as bases to mount terrorist attacks. Uniting the north with the core will allow Colombo to take advantage of low-end manufacturing leaving China, using its underdeveloped north as a source of cheap labor.

SITUATION REPORTS

Sri Lanka: Government Fails To Reach Agreement With Bondholders on Debt Restructuring

India, Sri Lanka: Sri Lanka Brushes Off Indian Criticism Regarding Ceded Island

Sri Lanka: IMF Reaches Staff-Level Agreement Following Second Review

Japan, ASEAN: Tokyo Drawing Up 10-Year Plan To Help ASEAN Maritime Countries

Sri Lanka: Port Prohibition on Chinese Research Ships Illustrates Multi-Aligned Foreign Policy

Sri Lanka: Critical Tourism Industry Rebounds as IMF Reforms Loom

Sri Lanka, Bangladesh: IMF Approves Second Installment of Bailout Funds

Sri Lanka: Government Announces In-Principle Agreement With Official Creditors on Debt Restructuring

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