Asia Securities

Data released by the Department of Census and Statistics shows that the Sri Lankan economy contracted 1.6% YoY in 1Q 2022, following the 2.0% YoY growth recorded in 4Q 2021. Meanwhile, the Agri sector recorded a sharp decline owing to the fertiliser ...

The IMF team have completed a week in Sri Lanka, with discussions ongoing until the 30th of June. We also note that curbing recurrent expenditure either through interest expenses or state sector salaries/pensions would also be a focus point to reachi...

Sri Lanka’s official reserves reached USD 1.9bn in May (+6.0% MoM, -52.4% YoY). Official reserves continue to cover less than a month of imports. While our discussions indicate that the Central Bank is seeking a USD 1.5bn funding line from India, we ...

Economic and political uncertainty remained elevated during the month. With our expectation of an electricity price hike combined with a worse-than-expected impact in the Yala season on the Agri sector, we revise our inflation forecast to 30.0% - 35....

At the second Monetary Policy meeting under the newly appointed Governor, Dr. Nandalal Weerasinghe, the Central Bank (CB) maintained key policy rates unchanged, in-line with our view. Notably, CB holdings of government securities remained high, at LK...

In one of the most volatile months seen in recent history, economic and political stability was tested in April ‘22. Meanwhile inflationary pressure continued, with headline inflation reaching 29.8% YoY in April as fuel prices increased over 130%. Th...