Economy Archives - Page 3 of 11

Sri Lanka’s Rupee Closes Stronger at 293.00/20 to the Dollar

The Sri Lankan Rupee showed new strength on Wednesday. It closed at 293.00/20 against the US Dollar, up from 293.50/60. This change signals a positive shift in the currency exchange rate.

The forex market performance matches the nation’s ongoing economic recovery efforts. Bond yields stayed steady amid the Rupee appreciation. A bond due 15.12.2026 closed at 10.60/80 percent.

Another bond maturing on 15.12.2027 closed at 11.45/60 percent. This stability in bonds highlights the improving health of the Sri Lankan economy.

Sri Lanka's Rupee Closes Stronger at 293.00/20 to the Dollar

The Rupee’s rise matches a drop in the central bank’s bill stock. As the exchange rate grows, importers may benefit from better rates. This could boost trade and business in the nation.

The Rupee’s growth and steady bond yields paint a good picture. They show Sri Lanka’s economic prospects are improving. The currency’s strength proves that financial measures are working.

Recent Rupee Performance Against the US Dollar

The Sri Lankan rupee is getting stronger against the US dollar. On Thursday, it was 292.80/85 against the dollar, up from 293.00/20 the day before. This shows more trust in the local currency.

Rupee Strengthens to 292.80/85 on Thursday

On Thursday, the rupee opened at 293.05/15 to the dollar. This was the same as Wednesday’s closing rate. The stable exchange rate helps businesses and investors.

The rupee’s rise to 292.80/85 during the day boosted confidence in the local currency. This stability is good for economic growth and investor trust.

Rupee Remains Stable at 293.05/15

The rupee’s steady performance is important to note. Its unchanged opening rate shows consistency. This stability helps maintain investor confidence and supports economic growth.

The dollar’s selling rate fell below Rs. 300 for the first time since June 8, 2023. It reached Rs. 299.35, with a buying rate of Rs. 290.30.

The rupee’s strength against the dollar is good news. It improves Sri Lanka’s economic outlook and ability to attract foreign investment.

Bond Yield Trends in Sri Lanka

Sri Lanka’s bond market shows interesting trends lately. Bond yields remain steady despite the rupee’s rise against the US dollar. Analysts are watching bonds closely to assess the economy and investment chances.

Bond Yields Remain Steady Amid Rupee Appreciation

On October 30, 2024, the January 15, 2027 bond was quoted at 10.79/83 percent. The March 15, 2028 bond recorded yields of 11.70/75. These numbers show a stable bond market as the rupee strengthens.

The rupee’s rise is due to increased foreign investment and a better economic outlook. This stability is noteworthy given the currency’s recent performance.

Treasury Bond Auction Impacts on Yields

The upcoming Treasury Bond auction will likely affect bond yields soon. The central bank plans to issue 95 billion rupees worth of bonds. This auction will reveal demand for government securities and market liquidity.

The auction’s outcome may influence the yield curve. This curve shows the link between bond yields and their maturities. It’s a key indicator for investors.

Investors and analysts will watch bond yields, auctions, and the rupee’s performance closely. Understanding these trends helps market participants make smart decisions. It allows them to navigate Sri Lanka’s bond market with more confidence.

World Bank Projects 4.4% Growth for Sri Lanka in 2024

The World Bank foresees a 4.4% growth for Sri Lanka’s economy in 2024. This positive outlook follows four quarters of growth. The industrial and tourism sectors are driving this progress. Check out the economic forecast for more details.

Sri Lanka’s economy has shown signs of stabilization, surpassing earlier estimates. However, the recovery remains fragile. It depends on maintaining stability, restructuring debt, and pursuing reforms.

Sri Lanka has $10 billion in untapped export potential annually, mainly in Asia. This could create about 142,500 new jobs. The World Bank suggests reducing tariffs and improving efficiency to boost exports.

Despite growth projections, poverty levels may stay above 20% until 2026. Inflation is expected to remain below 5% in 2024. The current account should stay in surplus, thanks to tourism and remittances.

Key Takeaways

The World Bank projects Sri Lanka’s economy to grow by 4.4% in 2024, driven by the industrial and tourism sectors.
Sri Lanka’s untapped export potential is estimated at $10 billion annually, which could create around 142,500 new jobs.
The recovery remains fragile and depends on maintaining macroeconomic stability, restructuring debt, and pursuing further reforms.
Poverty levels are expected to remain above 20% until 2026, despite the positive growth outlook.
Inflation is anticipated to stay below the Central Bank’s target of 5% in 2024, and the current account is forecasted to remain in surplus.

Sri Lanka’s Economy Stabilizes with Positive Growth Outlook

Sri Lanka’s economy is on the mend. The World Bank predicts a 4.4% growth rate in 2024. This follows four quarters of growth, led by industrial and tourism sectors.

The recovery stems from successful fiscal policies and debt restructuring. These efforts have stabilized the economy and drawn foreign investment.

Four Consecutive Quarters of Growth Driven by Industrial and Tourism Sectors

Industrial and tourism sectors have fueled Sri Lanka’s economic comeback. Tourism has rebounded as international visitors return to the island nation. The government’s promotion of Sri Lanka as a safe destination has boosted tourism revenue.

World Bank Warns Recovery Remains Fragile and Dependent on Reforms

The World Bank cautions that Sri Lanka’s recovery is still fragile. It depends on continuing structural reforms. The country must maintain stability, restructure debt, and implement growth-boosting reforms.

Sri Lanka could increase export revenues by $10 billion yearly. This could create about 142,500 new jobs. Diversifying the economy and promoting sustainable growth are crucial.

The World Bank expects growth to slow to 3.5% in 2025 and 3.1% in 2026. This highlights the need for ongoing economic strengthening efforts.

Sri Lanka’s growth lags behind the 6.4% projected for South Asian economies. However, Sri Lanka’s commitment to recovery is clear from recent progress.

Focusing on women’s labor participation and global trade opportunities can boost growth. This will help Sri Lanka contribute to the region’s economic success.

Key Reforms Necessary to Boost Exports and Attract Foreign Investment

Sri Lanka aims to capitalize on its projected 4.4% economic growth in 2024. The World Bank report highlights the need for reforms to unlock $10 billion in export potential. Diversifying exports could create 142,500 new jobs, boosting the economy and reducing poverty.

Poverty rates are expected to remain above 20% until 2026. Reforms are crucial to attract foreign investment and create new opportunities. Sri Lanka must remove bureaucratic obstacles and level the playing field for investors.

Sri Lanka’s Untapped Export Potential Estimated at $10 billion Annually

To leverage its export potential, Sri Lanka must implement crucial reforms. These changes aim to attract foreign investment and create new jobs. The World Bank suggests streamlining processes and fostering an investor-friendly environment.

Diversifying Exports Across Manufacturing, Services, and Agriculture Crucial

Sri Lanka must focus on diversifying its exports across various sectors. This strategy will create a more resilient economy and new job opportunities. The report emphasizes increasing female labor force participation to drive inclusive growth.

Seylan Bank’s strong financial performance shows potential growth in the financial sector. This can support export-oriented businesses and contribute to overall economic development.

Removing Bureaucratic Obstacles and Creating Level Playing Field for Investors

Sri Lanka must address challenges like poverty, food insecurity, and financial sector vulnerabilities. Implementing targeted reforms and investing in education, healthcare, and infrastructure is crucial. These actions will create a better environment for businesses and ensure shared economic growth.

Embracing these critical reforms is essential for Sri Lanka’s future. They will unlock the country’s full economic potential and create a brighter future for its citizens.

Sri Lankan Author Shehan Karunatilaka Wins 2022 Booker Prize for “The Seven Moons of Maali Almeida”

Shehan Karunatilaka has won the 2022 Booker Prize for his novel “The Seven Moons of Maali Almeida.” The £50,000 prize honors the best English-language fiction published in the UK and Ireland. This achievement marks a milestone for Sri Lankan literature.

Karunatilaka is the second Sri Lankan-born author to receive the Booker Prize. Michael Ondaatje won in 1992 for “The English Patient.” This recognition highlights the rich landscape of contemporary fiction from Sri Lanka.

Sri Lankan Author Shehan Karunatilaka Wins 2022

“The Seven Moons of Maali Almeida” is a supernatural satire set during the Sri Lankan civil war. It follows a gay war photographer, Maali Almeida, on his quest to expose wartime atrocities.

Neil MacGregor, the judging panel chair, praised the book’s ambition and audacity. He called it an “afterlife noir” that pushes genre boundaries.

Karunatilaka’s win brings hope to Sri Lanka’s literary community amid political and economic turmoil. In his speech, he addressed Sri Lankans in Tamil and Sinhalese, recognizing the moment’s importance.

Shehan Karunatilaka’s “The Seven Moons of Maali Almeida” Wins Prestigious Award

Sri Lankan-born author Shehan Karunatilaka has won the 2022 Booker Prize. His novel “The Seven Moons of Maali Almeida” is a supernatural satire set during Sri Lanka’s civil war. The story follows a murdered photographer who wakes up in a celestial visa office in 1990.

Karunatilaka is the second Sri Lankan-born author to receive this prestigious literary award. Michael Ondaatje won in 1992 for “The English Patient.” This win marks a significant achievement for South Asian literature.

A Supernatural Satire Set Amidst Sri Lankan Civil War

The novel blends murder mystery, comedy, and metaphysical themes. It explores the complexities of the Sri Lankan civil war through a deceased photographer’s eyes. The judging panel praised the book’s ambitious scope, daring audacity, and hilarious tone.

Head judge Neil MacGregor described it as an “afterlife noir.” The book skillfully tackles weighty themes like life’s purpose and an individual’s role in society. Karunatilaka was awarded the £50,000 prize unanimously.

Karunatilaka Becomes Second Sri Lankan-Born Author to Win Booker Prize

Born in Galle, Sri Lanka, in 1975, Karunatilaka was raised in Colombo. His victory comes 30 years after Michael Ondaatje’s win. Karunatilaka’s debut novel “Chinaman” previously won the Commonwealth Book Prize.

The author’s success showcases the growing recognition of South Asian literature globally. It highlights the importance of diverse voices in the literary world. “The Seven Moons of Maali Almeida” was published by independent press Sort of Books.

The 2022 Booker Prize ceremony was the first in-person event since 2019. Queen Consort Camilla presented the award, and singer-songwriter Dua Lipa gave the keynote speech. The prestigious award has been given annually since 1969.

Past winners include Margaret Atwood, Salman Rushdie, and Yann Martel. Karunatilaka’s win recognizes his exceptional storytelling. It also sheds light on the Sri Lankan civil war and its lasting impact on the nation’s collective consciousness.

Sri Lankan Author Shehan Karunatilaka Wins 2022 Booker Prize

Sri Lankan author Shehan Karunatilaka won the 2022 Booker Prize for “The Seven Moons of Maali Almeida.” The £50,000 award was presented at a London ceremony.

The literary judges praised the novel’s ambitious scope and hilarious audacity. Set during the 1990 Sri Lankan civil war, it blends murder mystery and comedy.

Judges Praise the Novel’s Ambition, Scope, and Hilarious Audacity

The Booker Prize judges reviewed 170 books before selecting six finalists. Karunatilaka’s novel stood out for its unique storytelling and daring approach.

They applauded its balance of humor and tragedy. The book explores the human condition amidst war’s chaos.

Karunatilaka Addresses the People of Sri Lanka in Tamil and Sinhalese During Acceptance Speech

In his speech, Karunatilaka spoke in Tamil and Sinhalese to Sri Lankans. He expressed hope for a future where his novel becomes fantasy, not political satire.

His words highlighted literature’s role in fostering understanding across divides. The audience was moved by his heartfelt message.

Born in 1975, Karunatilaka has won other prestigious literary awards. He’s the second Sri Lankan author to receive the Booker Prize.

His success showcases Sri Lanka’s thriving literary scene. It proves the country’s ability to produce world-class talent, as fiery as Chili Heat.

Plot and Themes of “The Seven Moons of Maali Almeida”

Shehan Karunatilaka’s novel grips readers with its afterlife noir set in Sri Lanka’s civil war. Maali Almeida, a murdered photographer, has seven moons to solve his death. His goal: guide the living to photos exposing war atrocities.

Afterlife Noir: A Photographer’s Quest to Expose Civil War Atrocities

The story unfolds during Sri Lanka’s 26-year civil war. It highlights the Tamil pogrom of July 1983, where hundreds were killed. Through Maali’s journey, we see military brutality and civil unrest.

Blending Genres: Murder Mystery, Comedy, and Metaphysical Themes

Karunatilaka mixes murder mystery, ghost story, and political satire. The tale unfolds over seven moons, keeping readers hooked. It includes a touching gay love story between Maali and DD.

This subplot reveals Colombo’s gay subculture. It also sheds light on rural Sri Lanka’s LGBTQ+ experiences.

Confronting Corruption, Race-Baiting, and Cronyism in Sri Lankan Society

The novel tackles key issues from Sri Lanka’s civil war era. It explores corruption, race-baiting, and cronyism, drawing from real events. By blending living and dead realms, it comments on violence and morality.

Karunatilaka’s work shows the war’s lasting impact on Sri Lankan society. It offers a powerful look at a troubled time in history.

Inflation Peaks at 70% in 2022; Government Takes Action

Sri Lanka faced a severe economic crisis in 2022. Inflation hit 70% in September, the highest since independence. This was due to monetary financing, currency depreciation, and rising global commodity prices.

The cost-of-living crisis hit the nation hard. The government introduced austerity policies and fiscal tightening to stabilize the economy. They also implemented price controls and raised interest rates to curb inflation.

Despite these efforts, GDP was expected to shrink by 2.3% in FY2023. A recovery of 4.4% was projected for FY2024. The agricultural sector showed strength, with exports rising in early 2024.

The crisis deeply affected the population. In 2024, 23.4% lived below $3.65 per day. Another 64.3% lived on less than $6.85 per day. Unemployment stayed around 4.7% in 2022 and 2023.

The government worked to boost exports and attract foreign investment. They also managed external debt, which was 43% of GDP in 2024.

Key Takeaways

Inflation in Sri Lanka peaked at 70% in September 2022, the highest since independence.
The government implemented austerity measures, fiscal tightening, and price controls to address the economic crisis.
GDP growth was forecasted to contract by 2.3% in FY2023, with a projected recovery of 4.4% in FY2024.
The agricultural sector showed resilience, with exports surging in the first half of 2024.
Poverty rates remained high, with 64.3% of the population living on less than $6.85 per day in 2024.

Sri Lanka’s Economic Crisis and Record-High Inflation

In 2022, Sri Lanka faced a severe economic crisis. Inflation peaked at an alarming 70%. The nation’s vulnerabilities worsened due to policy mistakes and global shocks.

Foreign exchange reserves depleted rapidly. This led to widespread social unrest and political instability. Citizens struggled with shortages of essential goods and services.

Preexisting Vulnerabilities and Policy Missteps

Sri Lanka’s economy was already fragile. Droughts, political crises, and terrorist attacks had taken their toll. Unsustainable policies, like significant tax cuts, made things worse.

The country entered the pandemic unprepared. It had thin reserves, high debt, and limited fiscal space. These factors left Sri Lanka vulnerable to economic shocks.

Impact of Global Shocks and Depleted Reserves

The war in Ukraine in early 2022 devastated Sri Lanka’s economy. With empty reserves, the nation faced a debt default. Importing essential goods became difficult, causing fuel shortages and power cuts.

Despite challenges, Sri Lankans united during Vesak celebrations. They found hope and unity amid the crisis.

Social Unrest and Political Instability

Economic hardships led to social unrest and political instability. Protests erupted, demanding solutions to shortages and government accountability. These events resulted in leadership changes.

Some sectors showed resilience amid the crisis. Apparel, textiles, and coconut-based products grew in September 2024. OMP Sri Lanka reported this positive trend.

Inflation Peaks at 70% in 2022; Government Implements Austerity Measures

Sri Lanka faced a severe economic crisis in 2022. Inflation skyrocketed to 70%, driven by monetary financing and rupee depreciation. Global commodity prices surged, followed by administrative price hikes.

Essential goods became scarce, and many lost their jobs. The tourism industry was hit particularly hard. Schools closed, and a food crisis loomed due to fertilizer shortages.

Causes of Hyperinflation: Monetary Financing and Currency Depreciation

Sri Lanka’s high public debt exceeded 70% of GDP. Low fiscal revenue made the country vulnerable to external shocks. Decreased government spending and poor financial management led to lower productivity.

Government’s Response: Fiscal Tightening and Price Controls

The government introduced austerity measures to tackle the crisis. These included tax increases and spending cuts. The central bank tightened monetary policy to curb inflation.

Temporary import suspensions were used to stabilize the economy. However, these actions increased the tax burden on individuals and businesses. State-owned enterprises suffered substantial losses, requiring government intervention.

The government’s response aimed to restore financial stability. It faced challenges from strikes and protests over salary demands. The goal was to start a disinflation process and economic recovery.

Galle Face Green Becomes Cultural Hub During Peaceful Protests in 2022

In 2022, Galle Face Green transformed into Sri Lanka’s protest epicenter. This iconic Colombo oceanfront space hosted the People’s Aragalaya movement from April to July. The historic landmark became a stage for peaceful protests and civic activism.

On July 9th, 2022, record-breaking crowds gathered at Galle Face Green. People from across Sri Lanka united to call for political change. Protesters renamed the space “GotaGoGama” (GGG) during the demonstrations.

Galle Face Green Becomes Cultural Hub During Peaceful Protests in 2022

Galle Face Green has long symbolized Colombo’s vibrant culture and history. The British introduced horse racing there in 1829. In 1853, Governor Henry Ward completed the sea-front walk for Colombo’s residents.

The landmark has faced controversies over the years. In 1873-75, plans to build a railway through the green sparked public outcry. An alternate route was chosen, preserving Galle Face Green’s integrity.

Historic Significance of Galle Face Green

Galle Face Green is a key Colombo landmark with a rich history. It has changed from marshland to a beloved public space. This iconic area has played a big role in colonial and modern times.

In the 1800s, British rule made Galle Face Green a trendy spot. It became popular for Victorian sports and leisure. The green space hosted many historic events over time.

A key moment was the mass independence rally on February 4th, 1948. This marked a turning point in Sri Lanka’s path to self-rule.

Evolution of Galle Face Green Over Centuries

Late 1800s saw a big fight over Galle Face Green. Plans for a railway line through the area faced strong opposition. The public, council, and Governor of Ceylon all got involved.

In the end, they decided to keep the area for public use. This choice helped preserve the green space for everyone to enjoy.

Landmark Public Gatherings at Galle Face Green

Galle Face Green has been a key spot for big events and peaceful protests. Recently, it saw huge crowds during the People’s Aragalaya protest movement.

People from all walks of life came together here. They united to ask for big changes and fair treatment in the economy.

Galle Face Green Becomes Cultural Hub During Peaceful Protests in 2022

In 2022, Galle Face Green in Colombo became a vibrant cultural hub. Peaceful demonstrations, called the Aragalaya movement, took place here. People from various backgrounds gathered to voice concerns about economic hardships.

Protesters renamed Galle Face Green “GotaGoGama”. This name referred to their demand for President Gotabaya Rajapaksa’s resignation. The movement’s main hashtag was #GoGotaHome, which sparked variations like #GoGota and #PalaGota.

Unprecedented Crowds Gather at Galle Face Green on July 9th, 2022

On July 9th, 2022, record-breaking crowds gathered at Galle Face Green. This marked a significant moment in the Aragalaya movement. The protests blended various cultural elements, with technology playing a key role.

Protesters used social media and digital networks to coordinate efforts. They also expressed dissent in novel ways. For example, they projected laser messages on the Presidential Secretariat walls.

The demonstrations showcased over twenty facets of culture. These included art, music, and democratic expression. However, some instances of derogatory behavior towards political figures occurred.

The protests lasted from March 15th to November 14th, 2022. They resulted in casualties, arrests, and resignations of key officials. This included President Gotabaya Rajapaksa.

The movement significantly impacted Sri Lanka’s political and social landscape. It highlighted the power of peaceful demonstrations in creating change. It also emphasized the importance of addressing the nation’s economic challenges.

Conclusion

Galle Face Green transformed into a vibrant cultural hub during 2022’s peaceful protests. This iconic space has been a platform for democratic expression throughout history. The recent Aragalaya movement further cemented its importance in Sri Lankan heritage.

On July 9th, 2022, unprecedented crowds gathered at Galle Face Green. They renamed it “GotaGoGama,” showing people’s determination to demand change. This event highlighted the power of collective action and Sri Lankan resilience.

Galle Face Green remains a beacon of hope amid Sri Lanka’s challenges. It’s crucial for fostering democratic expression and cultural resilience. Citizens continue to use this space to advocate for their rights.

Preserving this iconic space is vital for future generations. It ensures they can freely assemble and voice their opinions. Galle Face Green represents Sri Lanka’s democratic aspirations and cultural identity.