Sri Lanka

Economics

Sri Lanka's Parliament began debating the 2024 budget, which proposes sustaining ongoing tax revenue collection and increasing government workers' pay and state pensions, Ada Derana reported on Nov. 14.

Sri Lanka: Parliament Begins Debating 2024 Budget

United States

China

India

Politics

The United States is allocating over $553 million to support the construction of a deep-water terminal in Sri Lanka, Al Jazeera reported on Nov. 8.

Sri Lanka: U.S. to Lend $553M for Deep-Water Terminal in Sri Lanka

The International Monetary Fund (IMF) and Sri Lanka have reached a staff-level agreement on a first review of the country's $3 billion bailout, paving the way for potential IMF board approval in the coming weeks that would release a second tranche of approximately $330 million, Reuters reported Oct. 20.

Sri Lanka: IMF and Government Reach Staff-Level Agreement on First Review of Bailout

The International Monetary Fund (IMF) failed to reach a staff-level agreement with Sri Lanka following the fund's first review for the country's $2.9 billion bailout, Reuters reported on Sept. 27. 

Sri Lanka: IMF Fails to Reach Staff-Level Agreement, Delaying Second Bailout Tranche

Sri Lanka's President Ranil Wickremesinghe said he would implement the 13th amendment to strengthen provincial governments, the Press Trust of India reported on Aug. 9.

Sri Lanka: President Seeks to Strengthen Provincial Governments

Sri Lanka's Parliament passed an anti-corruption bill to meet the International Monetary Fund's (IMF) conditions of the country's $2.9 billion bailout in March, AP reported on July 19. 

Sri Lanka: Parliament Approves Anti-Corruption Bill to Meet IMF Requirements

Sri Lanka's central bank unveiled a plan to meet the International Monetary Fund (IMF)'s target of reducing Sri Lanka's overall debt to 95% of GDP by 2032, which will be submitted to parliament for approval on July 1, Reuters reported June 29.

Sri Lanka: Central Bank Announces Domestic Debt Restructuring Plan

Sri Lanka's Central Bank cut its standing deposit facility rate from 15.5% to 13% and its standing lending facility rate from 16.5% to 14% in an attempt to encourage economic growth amid a faster-than-expected decrease in inflation, AP reported on June 1.

Sri Lanka: Central Bank Cuts Key Rates by 250 Basis Points

Assessments

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

Military & Security

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

Bangladesh

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?

Flames engulf a vehicle belonging to the security personnel and a bus near outgoing Prime Minister Mahinda Rajapaksa's official residence in Colombo, Sri Lanka, May 9, 2022. 

The crisis is nearing a tipping point, with protesters now targeting political leaders' homes, and with the military now armed with sweeping powers to contain them.

The Potential Outcomes of Sri Lanka's Escalating Political Unrest

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: Parliament Begins Debating 2024 Budget

Sri Lanka: U.S. to Lend $553M for Deep-Water Terminal in Sri Lanka

Sri Lanka: IMF and Government Reach Staff-Level Agreement on First Review of Bailout

Sri Lanka: IMF Fails to Reach Staff-Level Agreement, Delaying Second Bailout Tranche

Sri Lanka: President Seeks to Strengthen Provincial Governments

Sri Lanka: Parliament Approves Anti-Corruption Bill to Meet IMF Requirements

Sri Lanka: Central Bank Announces Domestic Debt Restructuring Plan

Sri Lanka: Central Bank Cuts Key Rates by 250 Basis Points

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