The recent Easter Sunday bombings and the resultant economic slowdown don’t pose a major threat to Sri Lanka’s debt refinancing capacity, according to the International Monetary Fund (IMF). “We don’t see any major risk to the authorities’ refinancing plans at this stage based on the latest developments,” IMF’s mission chief for Sri Lanka, Manuela Goretti, said in a teleconference with reporters in Colombo yesterday.

She said market pressure on the country in the aftermath of the horrific terror attack by a homegrown jihadist group with links to the Islamic State that killed more than 250 people, had remained contained. “There have only been a small increase in international sovereign bond spreads—about 40 basis points. The domestic bond market has remained stable. The rupee has also stabilized and has recorded a slight appreciation this week.”

Sri Lanka successfully repaid two large bond issuances fully amounting to the US $ 1.5 billion in January and April this year. The next large international bond repayment is due in October 2020. Goretti said Sri Lanka could go back to tapping international capital market for funds as soon as the country’s security situation is stabilized.

“Sri Lanka remains open to international capital markets, and we are confident that as soon as the security situation in the country is stabilized, the authorities will go back to tapping the markets for funds. “We don’t see any major risk at this point given the profile of debt maturities and market conditions in the country,” she said.

The main three global rating agencies downgraded Sri Lanka following the October 26 political crisis last year, saying that the political uncertainty had increased the island nation’s debt refinancing risks. After the resolution of the political impasse in December, Sri Lanka in March this year successfully raised the US $ 2.4 billion from international capital markets through US $ 1 billion 5-year and US $ 1.4 billion 10-year issuances.

Meanwhile, Goretti said IMF was maintaining this year’s 3.5 percent growth forecast and the medium-term five percent forecast on Sri Lanka despite the terror attacks that disrupted the country’s economic activity extensively. She said it was too early to assess the impact of the recent shocks on Sri Lanka’s economy as official data or clear information was not yet available.

“So it would be speculative for us to revise our growth forecast at this juncture. But as we always do, we will continue to monitor the developments and will update our macro framework once we have more data points and additional information,” she said.

A recent Reuters poll of 10 analysts predicted that Sri Lanka’s economic growth could hit an 18-year low this year on the Easter Sunday bombings. The Finance Ministry estimates the hit on the tourism industry to be around the US $ 1.5 billion. Sri Lanka made the US $ 4.4 billion in tourism earnings last year.

The Ceylon Petroleum Corporation (Ceypetco) has revised its fuel prices with effect from midnight today (May 31). The revised rates are as follows:

The results of the GCE Ordinary Level (O/L) examinations for the year 2023 is scheduled to be released by September, Examinations Commissioner Amit Jayasundara said.

The four suspects arrested in India on suspicion of maintaining links with terrorist groups are drug addicts and not religous extremists, Defence Ministry Secretary, General (Retired) Kamal Gunaratne said.

The Ceylon Electricity Board (CEB) has proposed to reduce the electricity tariffs by 10-20 per cent following its improved financial performance of first quarter this year, CEB sources revealed.

Health experts have raised concerns about the rising use of tobacco products among schoolchildren in Sri Lanka.

The National Transport Commission (NTC) and private bus associations announced today that bus fares could be revised only if diesel prices drop to Rs. 307 per litre.

The Examinations Department said it released the results of the 2023 (2024) GCE Advanced Level (A/L) examinations a short while ago. They said that the results could be viewed on www.doenets.lk/exam or www.results.exams.gov.lk

Following severe criticism that US Ambassador Julie Chung had interfered in discussing Sri Lanka’s election process with the Election Commission (EC) officials, the EC chairman R.M.A.L. Rathnayake defended the move saying that the discussion with Chung was a casual one.

The overall rate of inflation as measured by the Colombo Consumer Price Index (CCPI) on a Year-on-Year basis has decreased to 0.9% in May 2024. According to the Department of Census and Statistics, the overall rate of inflation has decreased compared to the 1.5% recorded in April 2024. Food inflation has decreased to 0.0% in May from the 2.9% reported in April. Meanwhile, non-food inflation has increased to 1.3% in May from the 0.9% recorded in April.

A delegation of the National Peoples’ Power (NPP) has engaged in a discussion with the Indian High Commissioner to Sri Lanka, Santosh Jha during which the latter provided a briefing on various bilateral initiatives between India and Sri Lanka.

Former US President Donald Trump has been convicted by the jury for falsifying business records in a case linked to paying off a former porn star. Trump is expected to be sentenced on July 11 but Trumps lawyers are also expected to appeal the decision.

Sri Lanka has again requested Canada not to repeat baseless allegations of genocide here. Foreign Secretary Aruni Wijewardane took up the issue when she met Canadian Deputy Minister for International Development Christopher MacLennan at the Ministry of Foreign Affairs on Wednesday (28)

Sri Lankan diplomats in Russia will engage with officials of the Russian Defence Ministry this evening, in "first steps" towards repatriating Sri Lankans in Russia, who have been thrust into the battlefront of its war against Ukraine.

The Election Commission has expressed strong dismay over any attempts to delay the upcoming Presidential and Parliamentary elections, insisting they proceed as scheduled.

A powerful western country remains concerned over Sri Lankan ex-soldiers joining the Russian military in the war against Ukraine, an informed source said.

A contempt of court application has been filed before the Court of Appeal against former President Maithripala Sirisena for allegedly disregarding an order made by the Colombo District Court regarding the Sri Lanka Freedom Party (SLFP) chairmanship.

United National Party (UNP) General Secretary Palitha Range Bandara said today he will explain on Monday his proposal of extending the terms of the President and Parliament by two years.

A 52-year-old nun from a hostel in Kayts has been arrested on charges of assaulting a group of girls residing at the hostel. The arrest came following a complaint filed by the girls with the Kayts Police on Tuesday.

Chaos erupted among the political circles last evening after a statement was made by UNP General Secretary Palitha Range Bandara, stating that a proposal would be brought to Parliament to postpone the presidential and parliamentary elections, with parliamentarians from all parties rejecting the move and calling for an immediate response from the President.

Sri Lanka has announced that Russia will now require clearance from the Sri Lanka Defence Ministry for issuing visit visas to ex-servicemen. This decision was made following a constructive meeting between Sri Lanka's Minister of Foreign Affairs, Ali Sabry, and the Russian Ambassador to Colombo, His Excellency Levan S. Dzhagaryan.