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Govt debt rises to 115.2-pct of GDP by end 2022
ECONOMYNEXT –The government debt has risen to 115.2 percent of gross domestic product by end 2022 from 104.5 percent a year earlier based on the latest national account estimates by the island’s statistics office.
Sri Lanka’s central bank’s gross debt was about 4.66 percent of gross domestic product. The central bank has also spent special drawing rights, on which it has to pay interest.
However, the central bank holds government rupee Treasury bills which can be sold for dollars to rebuild reserves and repay the external debt as long as domestic credit is moderate and forex problems are not re-started under flexible inflation targeting, as credit recovers.The government was also responsible for another 5.62 percent of guaranteed debt in state enterprises, taking the total to 125.7 percent of GDP.
Sri Lanka’s nominal GDP exploded 16.8 trillion rupees in 2021 to 24.1 trillion rupees in 2022 in a classic Latin America style ‘inflationary blow off’ boosting nominal tax revenues and reducing the rupee debt to GDP ratio.
Central government rupee debt fell from 66 percent in 2021 to 55 percent in 2022 as a result, in a High Inflation and Financial Repression (IFR) haircut, despite new debt being raised to cover deficits.Sri Lanka’s domestic interest rates are around 20 to 30 percent amid fears of a domestic debt re-structure as there is no cut-off date for domestic debt re-structure under the IMF debt resolution framework.
Remarkably, domestic creditors are expected to keep financing the government as ‘senior creditors’ despite the threat of default.Central government foreign debt meanwhile rose from 39 percent to 61 percent of GDP as the rupee fell, despite most new disbursements being halted.
The other so-called senior creditors like the World Bank and ADB, whose debt is not re-structured, redirected approved loans to help urgent and humanitarian needs during 2022.The US, Japan and several European countries, China and India gave grants which will not add to debt.
Sri Lanka’s rupee appreciated in March 2022 amid a moderation in domestic credit and consumption, but fell back amid an ad hoc peg where central bank purchases appeared to have exceeded the excess dollars available from credit developments.When year-end debt is valued at 337 to the US dollar, the spot market value on March 16, government, government guaranteed debt was 118.7 percent of GDP with central bank’s foreign debt also counted.
The U.S. Embassy in Colombo welcomed the U.S. Sports Envoys to Sri Lanka, former National Basketball Association (NBA) and Women’s National Basketball Association (WNBA) players Stephen Howard and Astou Ndiaye, from June 8 through 14.
The Public Diplomacy section of the U.S. Embassy said that it would launch a weeklong basketball program intended to harness the unifying power of sports, made possible through collaboration with Foundation of Goodness and IImpact Hoop Lab.
While in Sri Lanka, Howard and Ndiaye, both retired professional basketball players, will conduct a weeklong program, Hoops for Hope: Bridging Borders through Basketball. The Sports Envoys will lead basketball clinics and exhibition matches and engage in leadership sessions in Colombo and Southern Province for youth aged 14-18 from Northern, Uva, Eastern and Western Provinces, offering skills and leadership training both on and off the court. The U.S. Envoys will also share their expertise with the Sri Lanka Basketball Federation, national coaches, and players, furthering the development of basketball in the country. Beyond the clinics, they will collaborate with Sri Lankan schoolchildren to take part in a community service project in the Colombo area.
“We are so proud to welcome Stephen and Astou as our Sports Envoys to Sri Lanka, to build on the strong people-to-people connections between the United States and Sri Lanka,” said U.S. Ambassador Julie Chung. “The lessons that will be shared by our Sports Envoys – communication, teamwork, resilience, inclusion, and conflict resolution – are essential for leadership development, community building, equality, and peace. The U.S. Sports Envoy program is a testament to our belief that sports can be a powerful tool in promoting peace and unity.”
SJB Colombo District MP Mujibur Rahuman in parliament demanded to know from the government the reasons for CEB suspending the leave of all its employees until further notice from Thursday.
MP Rahuman said that the CEB has got an acting General Manager anew and the latter yesterday morning issued a circular suspending leave of all CEB employees with immediate effect until further notice.
“We demand that Minister Kanchana Wijesekera should explain this to the House. This circular was issued while this debate on the new Electricity Amendment Bill was pending. There are many who oppose this Bill. The Minister must tell parliament the reason for the urge to cancel the leave of CEB employees,” the MP said.However, Speaker Mahinda Yapa Abeywardena prevented Minister Wijesekera responding to the query and said that the matter raised by MP Rahuman was not relevant.
The Chartered Institute of Personnel Management (CIPM) successfully concluded the 8th Annual CIPM Symposium, which took place on 31st May 2024. Themed “Nurturing the Human Element—Redefining HRM in a Rapidly Changing World,” the symposium underscored the pivotal role of human resource management (HRM) in today’s dynamic global landscape. Since its inception in 1959, CIPM has been dedicated to advancing the HR profession through education, professional development, and advocacy, solidifying its position as Sri Lanka’s leading professional body for HRM.
Ken Vijayakumar, the President of the CIPM, graced the occasion as the chief guest. The symposium commenced with the welcome address by the Chairperson, Prof. Arosha Adikaram, followed by the Web Launch of the Symposium Proceedings and Abstract Book by the CIPM President. The event featured distinguished addresses, including a speech by Chief Guest Ken Vijayakumar, President of CIPM, and an address by Guest of Honor Shakthi Ranatunga, Chief Operating Officer of MAS Holdings Pvt. Ltd., Sri Lanka.
The symposium also featured an inspiring keynote address by Prof. Mario Fernando, Professor of Management and Director of the Centre for Cross Cultural Management (CCCM) at the University of Wollongong, Australia.
Vote of Thanks of the inauguration session was delivered by Dr. Dillanjani Weeratunga, Symposium Co-chair.
The symposium served as a comprehensive platform for researchers to present their findings across a wide range of critical topics in HRM. These included Cultural Diversity and Inclusion, Talent Development and Retention, Ethical Leadership and Corporate Social Responsibility, Adapting to Technological Advancements, Mental Health and Well-being at Work, Global Workforce Challenges, Employee Empowerment, and Reskilling and Upskilling.
The plenary session was led by Prof. Wasantha Rajapakse. Certificates were awarded to the best paper presenters during the valedictory session, followed by a vote of thanks delivered by Kamani Perera, Manager of Research and Development.
The annual symposium of CIPM was a truly inclusive event, attracting a diverse audience that spanned undergraduates, graduates, working professionals, research scholars and lecturers. This widespread interest highlights the symposium’s significance in the field of HRM, offering a unique opportunity for everyone to network and learn from scholarly brains.The CIPM International Research Symposium was sponsored by Hambantota International Port, Sri Lanka Institute of Information Technology (SLIIT), E B Creasy & Co. PLC, and Print Xcel Company.
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
