Inflation ( CCPI)6.4% (Jan 2024)
GDP1.6% (3Q 2023)
Unemployment5.2% (2Q 2023)
3M T-Bill Rate9.79%
12M T-Bill Rate10.02%
2Y T-Bond Rate11.05%/ 11.10%
4Y T-Bond Rate12.20% / 12.30%
USD/LKR313/314
Reserves $4.5Bn (Jan 2024)
Cum. Trade Deficit $4,866 Mn (Dec 2023 cumulative)
Cum. Fiscal DeficitLKR 2,020 Bn (Nov 2023)

China offers two-year debt moratorium for Sri Lanka ahead of critical election

Bank & FinanceJan 22, 2023
China offers two-year debt moratorium for Sri Lanka ahead of critical election

Media reports that China also offered its support for debt restructuring assurance by offering a two-year debts moratorium after India’s assurance last week. China and India collectively hold nearly USD 9Bn debt which is 11.1% of the total public debt of Sri Lanka.

This progress would help Sri Lanka to push the IMF board-level approval of the USD 2.9Bn rescue package. Despite the no more details about the debt moratorium offered by China, it is learned that they have suspended the debt payment for two years.

Officials from Exim (Export-Import) Bank, the China state-run institution arrived in Sri Lanka a week ago and said to offer a comfort letter to the Ministry of Finance yesterday.

Disclaimer

Charts represents an assessment of the market environment as of the date indicated and it is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision. This document contains general information only and does not take into account an individual’s financial circumstances. An assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decisions.