Sri Lanka is soon going to strike a loan deal with the International Monetary Fund. According to the media reports, Sri Lanka has reached a preliminary agreement on an emergency loan with the IMF and a formal announcement is likely to be made on Thursday.

Sri Lanka locks preliminary loan deal with IMF: Reports

In crisis-hit Sri Lanka, people are battling a decline in living standards as they find themselves forced to skip meals, ration medicines and turn to firewood in place of cooking gas.

Sri Lankans forced to skip meals amid economic crisis

Crisis-hit Sri Lanka has unveiled fresh economic measures on Tuesday. The aim of the new reforms is to clinch a bailout from the International Monetary Fund. The reforms raise tax rates and increase payout to the poor.

WION Dispatch: Sri Lankan President presents first budget with hopes of IMF loan

30 August, 2022&nbsp;will mark the presentation of Sri Lankan President Ranil Wickremesinghe's first budget as head of his crisis-ridden nation. He will cut defence and other spending in an effort to secure help from the International Monetary Fund (IMF).

The staff-level agreement on extending crucial IMF assistance for Sri Lanka to address its greatest economic crisis since gaining independence from Britain in 1948 is expected to follow the interim budget for the remainder of the year, according to officials.

The island's tourism-based economy suffered from COVID-19, which also reduced remittances sent home by foreign workers. Rising oil costs, populist tax cuts, and a seven-month import restriction on chemical fertilisers last year, which ruined agriculture, all contributed to the damage.

As a result, there are ongoing shortages of essential goods, exorbitant prices, and widespread protests. As a result, President Gotabaya Rajapaksa was forced to leave the country, leaving <a href="https://www.wionews.com/world/calling-for-reforms-unga-president-abdulla-shahid-says-un-should-reflect-geopolitical-realities-511288">Wickremesinghe</a> in charge of restructuring the nation's massive debt to China and other nations while requesting an IMF bailout.

The finance ministry is held by six-time Prime Minister Wickremesinghe, who told Reuters this month that the budget he will deliver to parliament will cut spending by "a few hundred billion" rupees, including on defence.

Also read |&nbsp;<a href="https://www.wionews.com/opinions-blogs/spotlight-china-india-slug-it-out-in-colombo-511295">Spotlight | China &amp; India slug it out in Colombo</a>

In its most recent budget, which was unveiled in November, Sri Lanka sought to spend 3.9 trillion rupees ($11 billion).

In addition, Wickremesinghe is anticipated to lay out plans to aid low-income areas that have been hardest hit by the crisis and propose new taxes to reduce the country's budget deficit.

The interim budget is expected to lower the deficit objective from roughly 12% of GDP to 9.9%, but analysts caution that this is an ambitious goal because the economy is expected to fall by nearly 8% this year.

"A long-standing problem is budgets don’t meet revenue and deficit targets so this budget will have to really focus on proper revenue-based fiscal consolidation," said Shehan Cooray, head of research at Acuity Stockbrokers.

"The key things will be the budget deficit and primary deficit targets, which will be in line with an IMF plan."

According to rating agency S&amp;P Global, the country skipped 22 million interest payments due on June 3, June 28, and July 18, as well as a principle payment due on July 25.

Wednesday marks the end of a visit by an IMF team that came last week, and <a href="https://www.wionews.com/india-news/sri-lanka-seized-94-fishing-boats-10-fishermen-ensure-their-release-tn-govt-to-eam-510099">Sri Lankan</a> officials are hoping to push discussions for an emergency loan of approximately $3 billion by then.

(With inputs from agencies)

Also WATCH |&nbsp;South Asia Diary | Is Gotabaya Rajapaksa returning to Sri Lanka?

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30 August, 2022 will mark the presentation of Sri Lankan President Ranil Wickremesinghe's first budget as head of his crisis-ridden nation. He will cut defence and other spending in an effort to secure help from the International Monetary Fund (IMF).

30 August, 2022 will mark the presentation of Sri Lankan President Ranil Wickremesinghe's first budget as head of his crisis-ridden nation. He will cut defence and other spending in an effort to secure help from the International Monetary Fund (IMF). The staff-level agreement on extending crucial IMF assistance for Sri Lanka to address its greatest economic crisis since gaining independence from Britain in 1948 is expected to follow the interim budget for the remainder of the year, according to officials. The island's tourism-based economy suffered from COVID-19, which also reduced remittances sent home by foreign workers. Rising oil costs, populist tax cuts, and a seven-month import restriction on chemical fertilisers last year, which ruined agriculture, all contributed to the damage. As a result, there are ongoing shortages of essential goods, exorbitant prices, and widespread protests. As a result, President Gotabaya Rajapaksa was forced to leave the country, leaving Wickremesinghe in charge of restructuring the nation's massive debt to China and other nations while requesting an IMF bailout. The finance ministry is held by six-time Prime Minister Wickremesinghe, who told Reuters this month that the budget he will deliver to parliament will cut spending by "a few hundred billion" rupees, including on defence. Also read | Spotlight | China & India slug it out in Colombo In its most recent budget, which was unveiled in November, Sri Lanka sought to spend 3.9 trillion rupees ($11 billion). In addition, Wickremesinghe is anticipated to lay out plans to aid low-income areas that have been hardest hit by the crisis and propose new taxes to reduce the country's budget deficit. The interim budget is expected to lower the deficit objective from roughly 12% of GDP to 9.9%, but analysts caution that this is an ambitious goal because the economy is expected to fall by nearly 8% this year. "A long-standing problem is budgets don’t meet revenue and deficit targets so this budget will have to really focus on proper revenue-based fiscal consolidation," said Shehan Cooray, head of research at Acuity Stockbrokers. "The key things will be the budget deficit and primary deficit targets, which will be in line with an IMF plan." According to rating agency S&P Global, the country skipped 22 million interest payments due on June 3, June 28, and July 18, as well as a principle payment due on July 25. Wednesday marks the end of a visit by an IMF team that came last week, and Sri Lankan officials are hoping to push discussions for an emergency loan of approximately $3 billion by then. (With inputs from agencies) Also WATCH | South Asia Diary | Is Gotabaya Rajapaksa returning to Sri Lanka?

Sri Lanka: President Ranil Wickremesinghe to present maiden budget in hopes of IMF loan

China's Ambassador to Sri Lanka alleged that Colombo was "unreasonably pressured" to cancel the docking permit to a Chinese ship. The Indian mission in Colombo has hit back. It referred to the "militarisation of Taiwan" in a statement. Palki Sharma tells you more.

Gravitas: India hits back at China's Envoy to Sri Lanka

In 2021, the Sri Lankan government awarded the contract to supply organic fertilizer to a Chinese based company. However, the Sri Lankan Ministry of Agriculture cancelled that deal after the organic fertilizers failed to pass the quality test and were found highly contaminated with bacteria.

China pushes Sri Lanka to continue with Organic Fertilizer Project

Sri Lankan President Ranil Wickremesinghe is scheduled to present an interim budget today, seeking enhanced expenditure and borrowing limits for his cash-strapped government.

Sri Lankan President Ranil Wickremesinghe to present an interim budget today

Is Gotabaya Rajapaksa plotting a return to Sri Lanka? Reports claim president Ranil Wickremesinghe spoke to Gotabaya about his possible return to the country. How will the public respond to such a return? Why is Gotabaya taking this gamble? Mariam Wardak tells you.

South Asia Diary | Is Gotabaya Rajapaksa returning to Sri Lanka?

Amid the ongoing border tensions with China, India hit out at China for the 'Militarisation' of the Taiwan strait. What's the reason behind the move?

What made India hit out at China for the 'Militarisation' of the Taiwan strait?

India and China have had a troubled relationship on almost all fronts to have seen highs and lows of border disputes and trade differences for over security as well. To get more perspective on this, we're joined by China expert Atul Aneja, a senior journalist.

India, China spar over Chinese 'spy' vessel | Row continues over Yuan Wang 5

Mincing no words, the Indian high commission to Sri Lanka on Saturday gave an earful to Chinese envoy to Sri Lanka Qi Zhenhong, pointing to his recent remarks as "violation of basic diplomatic etiquette" which "may be a personal trait or reflecting a larger national attitude". The Chinese ambassador had written in 'Sri Lankan Guardian' and said that Sri Lanka "overcome aggression from its northern neighbour 17 times" in an apparent taunt to New Delhi.

The Indian high commission in a series of tweets stated that it had noted the remarks. The high commission further added that Zhenhong's view of "Sri Lanka's northern neighbour may be coloured by how his own country behaves,"

China, which is the northern neighbour of India has taken a series of aggressive actions at the Line of Actual Control (LAC) in Ladakh, including the infamous Galwan incident. In the 2020 Galwan incident, India lost 20 of its soldiers while China also lost four of its soldiers but the figure remains doubtful given Beijing's track record on transparency.

Read more:&nbsp;<a href="https://www.wionews.com/india-news/argentina-shows-interest-in-indias-tejas-fighter-aircraft-wants-to-trade-in-local-currencies-too-510664">Argentina shows interest in India's Tejas fighter aircraft; wants to trade in local currencies too</a>

The Chinese envoy had written the article on "One-China Principle to Yuan Wang 5”, calling on countries to abide by the principle and how the spy vessel that recently docked in Hambantota port was for "scientific research".&nbsp;

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➡️We have noted the remarks of the Chinese Ambassador. His violation of basic diplomatic etiquette may be a personal trait or reflecting a larger national attitude.(1/3)
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India and the US had pointed out security concerns to Colombo over the visit of the spy vessel. The vessel was still allowed to dock by Sri Lanka, despite several flip-flops that included withdrawing permission at one time, only to grant it back later.&nbsp;

Interestingly, remarks of the Indian mission highlighted that "opaqueness and debt-driven agendas are now a major challenge, especially for smaller nations. Recent developments are a caution."&nbsp;

China-led "debt trap" is something that has been a worry in the region and the world, and countries from Central Asia to South Asia have suffered from it. The "debt trap" is mega infrastructure projects that have been built by Chinese loans but lead to enormous debt which has impacted the economies of many countries.

Read more:<a href="https://www.wionews.com/india-news/outgoing-vietnam-envoy-pham-sanh-chau-emphasises-on-strong-defense-ties-with-india-510653">&nbsp;Outgoing Vietnam envoy Pham Sanh Chau emphasises on strong defense ties with India</a>

The current economic turmoil in Sri Lanka has also been attributed to Chinese actions. In 2017, Sri Lanka signed a deal on the Hambantota port, under which a Chinese state-run company, a 99-year lease of the area raising concerns. The statement said, " Sri Lanka needs support, not unwanted pressure or unnecessary controversies to serve another country’s agenda."

While Chinese envoys globally have been indulging in undiplomatic behaviour, also known as "wolf warrior diplomacy", this is the first time in the region at a Chinese ambassador has publicly indulged in such uncouth behaviour against India.

(With inputs from agencies)

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Mincing no words, the Indian high commission to Sri Lanka on Saturday gave an earful to Chinese envoy to Sri Lanka Qi Zhenhong, pointing to his recent remarks as "violation of basic diplomatic etiquette" which "may be a personal trait or reflecting a larger national attitude".

Mincing no words, the Indian high commission to Sri Lanka on Saturday gave an earful to Chinese envoy to Sri Lanka Qi Zhenhong, pointing to his recent remarks as "violation of basic diplomatic etiquette" which "may be a personal trait or reflecting a larger national attitude". The Chinese ambassador had written in 'Sri Lankan Guardian' and said that Sri Lanka "overcome aggression from its northern neighbour 17 times" in an apparent taunt to New Delhi. The Indian high commission in a series of tweets stated that it had noted the remarks. The high commission further added that Zhenhong's view of "Sri Lanka's northern neighbour may be coloured by how his own country behaves," China, which is the northern neighbour of India has taken a series of aggressive actions at the Line of Actual Control (LAC) in Ladakh, including the infamous Galwan incident. In the 2020 Galwan incident, India lost 20 of its soldiers while China also lost four of its soldiers but the figure remains doubtful given Beijing's track record on transparency. Read more: Argentina shows interest in India's Tejas fighter aircraft; wants to trade in local currencies too The Chinese envoy had written the article on "One-China Principle to Yuan Wang 5”, calling on countries to abide by the principle and how the spy vessel that recently docked in Hambantota port was for "scientific research". ➡️We have noted the remarks of the Chinese Ambassador. His violation of basic diplomatic etiquette may be a personal trait or reflecting a larger national attitude.(1/3) — India in Sri Lanka (@IndiainSL) August 27, 2022 × India and the US had pointed out security concerns to Colombo over the visit of the spy vessel. The vessel was still allowed to dock by Sri Lanka, despite several flip-flops that included withdrawing permission at one time, only to grant it back later. Interestingly, remarks of the Indian mission highlighted that "opaqueness and debt-driven agendas are now a major challenge, especially for smaller nations. Recent developments are a caution." China-led "debt trap" is something that has been a worry in the region and the world, and countries from Central Asia to South Asia have suffered from it. The "debt trap" is mega infrastructure projects that have been built by Chinese loans but lead to enormous debt which has impacted the economies of many countries. Read more: Outgoing Vietnam envoy Pham Sanh Chau emphasises on strong defense ties with India The current economic turmoil in Sri Lanka has also been attributed to Chinese actions. In 2017, Sri Lanka signed a deal on the Hambantota port, under which a Chinese state-run company, a 99-year lease of the area raising concerns. The statement said, " Sri Lanka needs support, not unwanted pressure or unnecessary controversies to serve another country’s agenda." While Chinese envoys globally have been indulging in undiplomatic behaviour, also known as "wolf warrior diplomacy", this is the first time in the region at a Chinese ambassador has publicly indulged in such uncouth behaviour against India. (With inputs from agencies) WATCH WION LIVE HERE:

'Reflective of larger national attitude', Indian mission gives an earful to Chinese envoy to Colombo

The fishermen issue between India and Sri Lanka has again surfaced after the Sri Lankan Navy arrested 10 Indian fishermen on charges of alleged poaching, on Monday (August 22). As the fishermen belong to the southern Indian state of Tamil Nadu, the state's chief minister has sought the intervention of India's external affairs minister on this issue.

Chief minister MK Stalin wrote to Dr S Jaishankar, pointing out​ that Sri Lanka has seized 94 fishing boats from Tamil Nadu and has recently arrested 10 fishermen hailing from the state.&nbsp;

This letter emphasized that the latest arrest of Indian fishermen is the fifth such instance since June and that these incidents continue unabated, intimidate the fishermen and hamper their livelihoods. In addition to the release of the fishermen, Stalin also mentioned that the boat owners be exempt from in-person appearances in a Lankan court.&nbsp;

"The apprehended Tamil Nadu fishermen were released on the condition that the owner of the boat should appear before the Sri Lankan court in person to claim the ownership of the boat. This is however not feasible considering the prevailing situation in Sri Lanka and therefore exemption from personal appearance may be sought for the boat owners," the letter mentioned.&nbsp;

Meanwhile, Sri Lanka's navy maintains that the Indian trawler was poaching in their waters, off Mullativu, via the International Maritime Boundary Line (IMBL). Their statement mentioned that the 10 Indian fishermen were being taken to the Trincomalee harbour and that they would be handed over to the Fisheries Inspector of Trincomalee for legal action.&nbsp;

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The fishermen issue between India and Sri Lanka has again surfaced after the Sri Lankan Navy arrested 10 Indian fishermen on charges of alleged poaching, on Monday (August 22).

The fishermen issue between India and Sri Lanka has again surfaced after the Sri Lankan Navy arrested 10 Indian fishermen on charges of alleged poaching, on Monday (August 22). As the fishermen belong to the southern Indian state of Tamil Nadu, the state's chief minister has sought the intervention of India's external affairs minister on this issue. Chief minister MK Stalin wrote to Dr S Jaishankar, pointing out that Sri Lanka has seized 94 fishing boats from Tamil Nadu and has recently arrested 10 fishermen hailing from the state. This letter emphasized that the latest arrest of Indian fishermen is the fifth such instance since June and that these incidents continue unabated, intimidate the fishermen and hamper their livelihoods. In addition to the release of the fishermen, Stalin also mentioned that the boat owners be exempt from in-person appearances in a Lankan court. "The apprehended Tamil Nadu fishermen were released on the condition that the owner of the boat should appear before the Sri Lankan court in person to claim the ownership of the boat. This is however not feasible considering the prevailing situation in Sri Lanka and therefore exemption from personal appearance may be sought for the boat owners," the letter mentioned. Meanwhile, Sri Lanka's navy maintains that the Indian trawler was poaching in their waters, off Mullativu, via the International Maritime Boundary Line (IMBL). Their statement mentioned that the 10 Indian fishermen were being taken to the Trincomalee harbour and that they would be handed over to the Fisheries Inspector of Trincomalee for legal action. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Sri Lanka seized 94 fishing boats, 10 fishermen, ensure their release: TN govt to EAM

As Sri Lanka faces its worst financial crisis in more than seven decades, an International Monetary Fund (IMF) team met Sri Lanka's president on Wednesday for talks on a bailout package, including restructuring debt of about $29 billion. It was the second such visit in three months even as the country scrambles to lock down a staff-level pact for a possible $3 billion programme. The main sticking point is how to find a sustainable track for Sri Lanka's unwieldy debt, which stood at 114% of GDP at the end of last year, Reuters reported.

Sri Lanka has $9.6 billion in bilateral debt and its private credit, which includes international sovereign bonds, stands at $19.8 billion, finance ministry data show. Japan and China are the largest holders of bilateral debt, with the latter accounting for about $3.5 billion. Overall, when commercial debt is added, China holds about a fifth of Sri Lanka's debt portfolio.

Also Read |&nbsp;<a href="https://www.wionews.com/south-asia/why-sri-lanka-bent-toward-economic-crisis-know-these-5-reasons-497442">Why Sri Lanka bent toward Economic Crisis? Know these 5 reasons</a>

The population of 22 million has been struggling for months because of soaring inflation, economic contraction and a severe shortage of essential items of food, fuel and medicine caused by a record slump in foreign reserves.

The combined impact of the COVID-19 pandemic and economic mismanagement have led to the most severe financial crisis since the country's independence in 1948. In July, then-president Gotabaya Rajapaksa fled the country and resigned after a mass uprising triggered by what many Sri Lankans saw as his mishandling of the crisis.

President Ranil Wickremesinghe, who is also the finance minister, plans to ask Japan to lead talks on bilateral debt restructuring after Sri Lanka secures IMF support.

(With inputs from agencies)

&nbsp;

&nbsp;

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As Sri Lanka faces its worst financial crisis in more than seven decades, an International Monetary Fund (IMF) team met Sri Lanka's president on Wednesday for talks on a bailout package, including restructuring debt of about $29 billion.

As Sri Lanka faces its worst financial crisis in more than seven decades, an International Monetary Fund (IMF) team met Sri Lanka's president on Wednesday for talks on a bailout package, including restructuring debt of about $29 billion. It was the second such visit in three months even as the country scrambles to lock down a staff-level pact for a possible $3 billion programme. The main sticking point is how to find a sustainable track for Sri Lanka's unwieldy debt, which stood at 114% of GDP at the end of last year, Reuters reported. Sri Lanka has $9.6 billion in bilateral debt and its private credit, which includes international sovereign bonds, stands at $19.8 billion, finance ministry data show. Japan and China are the largest holders of bilateral debt, with the latter accounting for about $3.5 billion. Overall, when commercial debt is added, China holds about a fifth of Sri Lanka's debt portfolio. Also Read | Why Sri Lanka bent toward Economic Crisis? Know these 5 reasons The population of 22 million has been struggling for months because of soaring inflation, economic contraction and a severe shortage of essential items of food, fuel and medicine caused by a record slump in foreign reserves. The combined impact of the COVID-19 pandemic and economic mismanagement have led to the most severe financial crisis since the country's independence in 1948. In July, then-president Gotabaya Rajapaksa fled the country and resigned after a mass uprising triggered by what many Sri Lankans saw as his mishandling of the crisis. President Ranil Wickremesinghe, who is also the finance minister, plans to ask Japan to lead talks on bilateral debt restructuring after Sri Lanka secures IMF support. (With inputs from agencies)

IMF team holds talks with Sri Lanka on a bailout package

India's aid package of nearly $6 billion to help crisis-hit Sri Lanka is unprecedented, given that India has never parted with such a large package of aid to any country, said Ashok Kantha, a former Indian diplomat who served as India's High Commissioner to Sri Lanka.

However, he cautioned that support on this scale was not feasible and raised questions over how far India would go to provide economic support to the crisis-hit island nation.&nbsp;

Instead, he suggested that India mobilise the international community and fast-track International Monetary Fund(IMF) assistance for Sri Lanka.&nbsp;

Speaking at an event organised by the Chennai Centre for China Studies, the former diplomat highlighted that even the international climate was not-so-favourable, as more than 40 nations are faced with serious debt stress.

He added that the ongoing Ukraine War had also deterred the Western powers from extending support to all these crisis-hit countries.&nbsp;

The event was titled "Sri Lanka-The Present Crisis, Geopolitical Challenges &amp; Way Ahead", and featured speakers from academia, defence forces' veterans, diplomats, etc.&nbsp;

Pointing out that the Lankan economic crisis had been building for some time, he said that the ongoing crisis was caused by a combination of structural and legacy issues.&nbsp;He listed out the 2019 Easter bombing, the COVID-19 pandemic, serious mismanagement, nepotism, and corruption.&nbsp;

Regarding the political crisis, he said that the situation had stabilised after a period of intense turmoil and the popular 'Aragalaya' struggle had lost steam, but not ended.&nbsp;

He added that the popular demand was met with the departure of the then ruling Rajapaksa clan. While he said that there was no immediate alternative for Ranil Wickremesinghe, he also pointed out how the core Buddhist support base of the Rajapaksas had eroded. "Mahinda Rajapaksa is down, but not out," Kanta opined.

On India's Sri Lanka dilemma, the former high commissioner to Sri Lanka pointed out that, on one hand, India wanted to support the island nation, considering historic and cultural ties, while on the other hand, it wanted to maintain the distinction of supporting the country while distancing itself from the political scene. 
&nbsp;

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India's aid package of nearly $6 billion to help crisis-hit Sri Lanka is unprecedented, given that India has never parted with such a large package of aid to any country, said Ashok Kantha, a former Indian diplomat who served as India's High Commissioner to Sri Lanka.

India's aid package of nearly $6 billion to help crisis-hit Sri Lanka is unprecedented, given that India has never parted with such a large package of aid to any country, said Ashok Kantha, a former Indian diplomat who served as India's High Commissioner to Sri Lanka. However, he cautioned that support on this scale was not feasible and raised questions over how far India would go to provide economic support to the crisis-hit island nation. Instead, he suggested that India mobilise the international community and fast-track International Monetary Fund(IMF) assistance for Sri Lanka. Speaking at an event organised by the Chennai Centre for China Studies, the former diplomat highlighted that even the international climate was not-so-favourable, as more than 40 nations are faced with serious debt stress. He added that the ongoing Ukraine War had also deterred the Western powers from extending support to all these crisis-hit countries. The event was titled "Sri Lanka-The Present Crisis, Geopolitical Challenges & Way Ahead", and featured speakers from academia, defence forces' veterans, diplomats, etc. Pointing out that the Lankan economic crisis had been building for some time, he said that the ongoing crisis was caused by a combination of structural and legacy issues. He listed out the 2019 Easter bombing, the COVID-19 pandemic, serious mismanagement, nepotism, and corruption. Regarding the political crisis, he said that the situation had stabilised after a period of intense turmoil and the popular 'Aragalaya' struggle had lost steam, but not ended. He added that the popular demand was met with the departure of the then ruling Rajapaksa clan. While he said that there was no immediate alternative for Ranil Wickremesinghe, he also pointed out how the core Buddhist support base of the Rajapaksas had eroded. "Mahinda Rajapaksa is down, but not out," Kanta opined. On India's Sri Lanka dilemma, the former high commissioner to Sri Lanka pointed out that, on one hand, India wanted to support the island nation, considering historic and cultural ties, while on the other hand, it wanted to maintain the distinction of supporting the country while distancing itself from the political scene. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India's large-scale support for Sri Lanka is not feasible, need to be cautious: Ex-Indian High Commissioner

Amid a worsening economy aided by an inept political ruling class, Sri Lanka has announced a ban on the import of over 300 'non-essential' items to reduce losses and cut the financial burden of the country.

Amid a worsening economy aided by an inept political ruling class, Sri Lanka has announced a ban on the import of over 300 'non-essential' items to reduce losses and cut the financial burden of the country. Reportedly, acting President Ranil Wickremesinghe signed the rather desperate measure under the Import and Export Control Act of the country. “Under imports and exports control regulations dated August 22 an import ban on a wide range of consumer items from food to machinery has come into immediate effect,” read the notification Read more: Australia commits another $25 million in emergency aid to Sri Lanka, takes total to $75 million Items such as chocolate, condensed milk, coconuts, perfumes, deodorants, shampoos, trunks, suitcases, and make-up products amongst myriad other things have been banned. Meanwhile, the import of electrical goods, ships and aircraft has been put on halt as well. WATCH | Food crisis looms in Sri Lanka; rice crop stunted × Not only the imports, but the government has also banned exports of building stone, cutlery cases, toilets, marble, tubes, pipes, hoses and fitting. To ease the import and export ban, the authorities have allowed a leeway. Reportedly, items shipped on or before August 23 and arriving on or before September 14 through seaports or airports will be allowed for customs clearance. While imports are being banned, the price of basic commodities in the country is touching new heights. Reportedly, on Sunday, the Ceylon Petroleum Corporation (CPC), a state-owned fuel distributor increased the price of kerosene to 253 Sri Lankan rupees (SLR), or 0.7 US dollars. Read more: Sri Lanka's CPC hikes kerosene prices to 253 SLR to recover losses As reported extensively by WION, the island nation, housing 22 million people is going through its worst economic crisis since it gained independence in 1948. After the President, Prime Minister and other high-ranking officials deserted office, the entire country plunged into a state of crisis. Months of food, fuel, and medication shortages led to the island nation missing payments on its $51 billion foreign debt in April Since then, the country has been requesting assistance from the International Monetary Fund (IMF). Reportedly, negotiations are ongoing with the IMF to secure an Extended Fund Facility (EFF). (With inputs from agencies) WATCH WION LIVE HERE:

Sri Lanka bans import of chocolate, shampoo & 300 other items to cut losses

Former Sri Lankan President Gotabaya Rajapaksa might return to the country by the first week of September. News agency Reuters reported citing two sources familiar with the matter. The sources told the news agency on Tuesday (August 23) that the return is dependent on arrangements to secure his safety.&nbsp;

Rajapaksa left the country last month in a military plane amid nationwide protests over the country's worst economic crisis. He landed in the neighbouring country, Maldives, and then spent weeks in Singapore before flying to Thailand. Ever since leaving the country, Rajapaksa has not made any comments or public appearances.&nbsp;

Recently, local media reported that Rajapaksa was expected to return to the island nation on August 24. But the arrival has apparently been delayed.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/south-asia/sri-lanka-ranks-5th-among-10-countries-with-highest-food-price-inflation-world-bank-509734">Sri Lanka ranks 5th among 10 countries with highest food price inflation: World Bank</a>&nbsp;

Reuters report mentioned that the delay occurred because talks are continuing between the ruling Sri Lanka Podujana Peramuna (SLPP) and the government over his security and other concerns.&nbsp;

As quoted by the news agency, one of the sources, who is a Sri Lankan government official, said: "He definitely wants to come back. But security is the main issue and intelligence has advised that he delay his return. He may return in two weeks or even before that if arrangements for his safety can be made."&nbsp;

While the second source said the high cost of his stay in Thailand was one of the reasons that he is seeking a return home as soon as possible.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/south-asia/islamabad-court-summons-former-pm-imran-khan-in-contempt-case-on-august-31-509646">Islamabad court summons former PM Imran Khan in contempt case on August 31</a>&nbsp;

The source said: "The bill has now run to several hundred million rupees as it includes the cost for a private jet, a presidential suite and round the clock security. The cost is becoming prohibitive."&nbsp;

Another source close to the Rajapaksa family said that the expenses of Rajapaksa’s stay in Thailand are largely being borne by some of his supporters.&nbsp;

Sagara Kariyawasam, who is SLPP general secretary, said the party had met President Ranil Wickremesinghe to talk about the arrangements for Rajapaksa's safe return.&nbsp;

Kariyawasam said, "We have made the request for his return to be facilitated as soon as possible.”&nbsp;

In the past few months, Sri Lanka suffered through because of food and fuel shortages, lengthy blackouts and galloping inflation. This was in he aftermath as the nation ran out of foreign currency to import vital goods.&nbsp;

In a dramatic turn of events on July 9, hundreds of thousands of people in Colombo stormed the presidential palace, demanding Rajapaksa take responsibility for shortages of medicines, food and fuel.&nbsp;

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Former Sri Lankan President Gotabaya Rajapaksa might return to the country by the first week of September. News agency Reuters reported citing two sources familiar with the matter.

Former Sri Lankan President Gotabaya Rajapaksa might return to the country by the first week of September. News agency Reuters reported citing two sources familiar with the matter. The sources told the news agency on Tuesday (August 23) that the return is dependent on arrangements to secure his safety. Rajapaksa left the country last month in a military plane amid nationwide protests over the country's worst economic crisis. He landed in the neighbouring country, Maldives, and then spent weeks in Singapore before flying to Thailand. Ever since leaving the country, Rajapaksa has not made any comments or public appearances. Recently, local media reported that Rajapaksa was expected to return to the island nation on August 24. But the arrival has apparently been delayed. ALSO READ | Sri Lanka ranks 5th among 10 countries with highest food price inflation: World Bank Reuters report mentioned that the delay occurred because talks are continuing between the ruling Sri Lanka Podujana Peramuna (SLPP) and the government over his security and other concerns. As quoted by the news agency, one of the sources, who is a Sri Lankan government official, said: "He definitely wants to come back. But security is the main issue and intelligence has advised that he delay his return. He may return in two weeks or even before that if arrangements for his safety can be made." While the second source said the high cost of his stay in Thailand was one of the reasons that he is seeking a return home as soon as possible. ALSO READ | Islamabad court summons former PM Imran Khan in contempt case on August 31 The source said: "The bill has now run to several hundred million rupees as it includes the cost for a private jet, a presidential suite and round the clock security. The cost is becoming prohibitive." Another source close to the Rajapaksa family said that the expenses of Rajapaksa’s stay in Thailand are largely being borne by some of his supporters. Sagara Kariyawasam, who is SLPP general secretary, said the party had met President Ranil Wickremesinghe to talk about the arrangements for Rajapaksa's safe return. Kariyawasam said, "We have made the request for his return to be facilitated as soon as possible.” In the past few months, Sri Lanka suffered through because of food and fuel shortages, lengthy blackouts and galloping inflation. This was in he aftermath as the nation ran out of foreign currency to import vital goods. In a dramatic turn of events on July 9, hundreds of thousands of people in Colombo stormed the presidential palace, demanding Rajapaksa take responsibility for shortages of medicines, food and fuel. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Ex-Sri Lankan President Gotabaya Rajapaksa likely to return to the country in first week of September

Sri Lanka ranks fifth in a list of 10 countries with the highest food price inflation in the world, the latest World Bank assessment says. The Food Security update released by the World Bank said trade policy actions on food and fertilizers have surged since the beginning of the war in Ukraine, ANI reported.&nbsp;

The report says that as of July, Sri Lanka is experiencing significant shortages in the domestic food supply. The country's agricultural production has decreased by 40 per cent to 50 per cent because of fertilizer shortages, and there is a lack of foreign exchange to purchase food imports.

Also Read |&nbsp;<a href="https://www.wionews.com/south-asia/why-sri-lanka-bent-toward-economic-crisis-know-these-5-reasons-497442">Why Sri Lanka bent toward Economic Crisis? Know these 5 reasons</a>

"Fertilizer and fuel (for land preparation, transport, and harvesting activities) shortages are expected to limit the food supply. Some relief is coming from the first shipment of 44,000 tonnes of urea supported by Indian credit (and 21,000 tonnes is expected to arrive soon). There has been an increase in demand for Indian rice, with roughly 9.6 million tonnes shipped this year," the assessment says.

Exporters are concerned that export restrictions will be introduced, similar to what has been done for wheat, and are moving quickly to open letters of credit. They have signed contracts to export one million tonnes of rice from June through September 2022.&nbsp;

Food price inflation has reached 80 per cent in Sri Lanka and has come at a time when food price inflation remains at a multiyear high in South Asian countries, including Pakistan.&nbsp;

Also Read |&nbsp;<a href="https://www.wionews.com/india-news/sri-lankan-crisis-economy-lessons-india-can-learn-498205">Sri Lankan crisis: Economy lessons India can learn</a>

Challenges to food security persist amid the ongoing Russia-Ukraine war. According to the World Bank assessment, the agricultural, cereal, and export price indices globally were stable over the past two weeks, with the agricultural and cereal price indices one per cent higher than two weeks ago.

Domestic food price inflation continues to remain high around the world as almost all low and middle-income countries are witnessing high inflation. Besides, the share of high-income countries with high inflation has also increased sharply.

(With inputs from agencies)

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Sri Lanka ranks fifth in a list of 10 countries with the highest food price inflation in the world, the latest World Bank assessment says. The Food Security update released by the World Bank said trade policy actions on food and fertilizers have surged since the beginning of the war in Ukraine, ANI reported.

Sri Lanka ranks fifth in a list of 10 countries with the highest food price inflation in the world, the latest World Bank assessment says. The Food Security update released by the World Bank said trade policy actions on food and fertilizers have surged since the beginning of the war in Ukraine, ANI reported. The report says that as of July, Sri Lanka is experiencing significant shortages in the domestic food supply. The country's agricultural production has decreased by 40 per cent to 50 per cent because of fertilizer shortages, and there is a lack of foreign exchange to purchase food imports. Also Read | Why Sri Lanka bent toward Economic Crisis? Know these 5 reasons "Fertilizer and fuel (for land preparation, transport, and harvesting activities) shortages are expected to limit the food supply. Some relief is coming from the first shipment of 44,000 tonnes of urea supported by Indian credit (and 21,000 tonnes is expected to arrive soon). There has been an increase in demand for Indian rice, with roughly 9.6 million tonnes shipped this year," the assessment says. Exporters are concerned that export restrictions will be introduced, similar to what has been done for wheat, and are moving quickly to open letters of credit. They have signed contracts to export one million tonnes of rice from June through September 2022. Food price inflation has reached 80 per cent in Sri Lanka and has come at a time when food price inflation remains at a multiyear high in South Asian countries, including Pakistan. Also Read | Sri Lankan crisis: Economy lessons India can learn Challenges to food security persist amid the ongoing Russia-Ukraine war. According to the World Bank assessment, the agricultural, cereal, and export price indices globally were stable over the past two weeks, with the agricultural and cereal price indices one per cent higher than two weeks ago. Domestic food price inflation continues to remain high around the world as almost all low and middle-income countries are witnessing high inflation. Besides, the share of high-income countries with high inflation has also increased sharply. (With inputs from agencies)

Sri Lanka ranks 5th among 10 countries with highest food price inflation: World Bank

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South Asia Diary: UN rights chief visits Rohingya camp in Bangladesh | Jumbo root canal in Pakistan

Sri Lanka's trouble simply don't seem to end. After an economic and political crisis, the Island is now facing a food shortage. The rice crop across Sri Lanka is failing and the lack of fertilizers and farm equipment is being blamed.

Food crisis looms in Sri Lanka; rice crop stunted

To reduce losses, Ceylon Petroleum Corporation (CPC), a state-owned fuel distributor in Sri Lanka, increased the price of kerosene as of Sunday midnight. The CPC declared in a statement that a litre of kerosene will now cost 253 Sri Lankan rupees (SLR), or 0.7 US dollars, Xinhua reported.

Many unprivileged groups consume kerosene, which was formerly sold at a discounted price of 87 rupees.

Speaking in the Sri Lankan parliament, Minister of Power and Energy Kanchana Wijeskera announced plans to increase the cost of kerosene while providing low-income families with a subsidy. The minister claimed that it costs 421 rupees to generate one litre of kerosene.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/imf-sri-lanka-talks-to-resume-next-week-508574">IMF-Sri Lanka talks to resume next week</a>

Wijeskera said, "Selling kerosene at a subsidised rate is one of the main reasons why the CPC makes a loss," IANS reported.

Sri Lanka has been in economic turmoil for many months. After months of food, fuel, and medication shortages, the island nation missed payments on its $51 billion foreign debt in April and has been requesting assistance from the International Monetary Fund (IMF).

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/former-sri-lanka-president-gotabaya-rajapaksa-has-applied-for-green-card-to-settle-in-us-report-508298">Former Sri Lanka president Gotabaya Rajapaksa has applied for Green Card to settle in US: Report</a>

The IMF said that a delegation will visit the South Asian island country next week to begin aid negotiations that were put on hold due to the unrest that forced the country’s former president, Rajapaksas Gotabaya, to resign and flee the country, AFP reported.

After months of hardships brought on by shortages of necessities, rolling blackouts, and skyrocketing prices, an unparalleled economic collapse has spurred many massive anti-government rallies this year.

A 22 million-people country has also endured protracted blackouts and the rising cost of living challenges as a result of shortages and a currency meltdown that increased prices.&nbsp;

(With inputs from agencies)

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To reduce losses, Ceylon Petroleum Corporation (CPC), a state-owned fuel distributor in Sri Lanka, increased the price of kerosene as of Sunday midnight. The CPC declared in a statement that a litre of kerosene will now cost 253 Sri Lankan rupees (SLR), or 0.

To reduce losses, Ceylon Petroleum Corporation (CPC), a state-owned fuel distributor in Sri Lanka, increased the price of kerosene as of Sunday midnight. The CPC declared in a statement that a litre of kerosene will now cost 253 Sri Lankan rupees (SLR), or 0.7 US dollars, Xinhua reported. Many unprivileged groups consume kerosene, which was formerly sold at a discounted price of 87 rupees. Speaking in the Sri Lankan parliament, Minister of Power and Energy Kanchana Wijeskera announced plans to increase the cost of kerosene while providing low-income families with a subsidy. The minister claimed that it costs 421 rupees to generate one litre of kerosene. Also read | IMF-Sri Lanka talks to resume next week Wijeskera said, "Selling kerosene at a subsidised rate is one of the main reasons why the CPC makes a loss," IANS reported. Sri Lanka has been in economic turmoil for many months. After months of food, fuel, and medication shortages, the island nation missed payments on its $51 billion foreign debt in April and has been requesting assistance from the International Monetary Fund (IMF). Also read | Former Sri Lanka president Gotabaya Rajapaksa has applied for Green Card to settle in US: Report The IMF said that a delegation will visit the South Asian island country next week to begin aid negotiations that were put on hold due to the unrest that forced the country’s former president, Rajapaksas Gotabaya, to resign and flee the country, AFP reported. After months of hardships brought on by shortages of necessities, rolling blackouts, and skyrocketing prices, an unparalleled economic collapse has spurred many massive anti-government rallies this year. A 22 million-people country has also endured protracted blackouts and the rising cost of living challenges as a result of shortages and a currency meltdown that increased prices. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Sri Lanka's CPC hikes kerosene prices to 253 SLR to recover losses

Amid Sri Lanka's ongoing economic crisis, state-owned fuel contributor and distributor Ceylon Petroleum Corporation has hiked the price of kerosene to cut losses. The petroleum corporation said that the price of 1 litre of kerosene has been increased by 0.7 dollars per litre.

WION Dispatch | President: Sri Lanka needs new political concept

Sri Lanka: Hikes Kerosene prices to cut losses, price per litre raised by $0.7 to $0.97

After fleeing from widespread protests and an economic crisis, the famous Sri Lankan President Gotabaya Rajapaksa is now seeking to return home. Gotabaya fled to Singapore, then to Thailand after a huge crowd stormed the Presidential Palace.

Mahinda: I would have asked Gotabaya not to leave Lanka

The International Monetary Fund on Friday said that its team will travel to Sri Lanka next week to resume aid talks.

Formal negotiations on a fresh package for the struggling country started in June but were derailed by the political unrest that forced the now ex-president Gotabaya Rajapaksa to resign and then flee after a horde of protestors&nbsp;dramatically overtook the presidential palace.

Watch |&nbsp;Gravitas: Gotabaya Rajapaksa applies for US green card

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After months of food, fuel, and medication shortages, the island nation defaulted payments on its $51 billion foreign debt in April and is now seeking assistance from the International Monetary Fund.&nbsp;

President Ranil Wickremesinghe has revealed that the loan package under discussion with the IMF is for $2 billion to $3 billion. As per a Reuters report, he also said that he will publish an interim budget in September that would emphasise the fiscal reduction measures negotiated with the IMF.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/situation-in-sri-lanka-stabilised-no-need-to-extend-emergency-president-wickremesinghe-507547" hreflang="en">Situation in Sri Lanka 'stabilised', no need to extend emergency: President Wickremesinghe</a>

IMF personnel are scheduled to travel to Colombo from August 24 to August 31 "to continue discussions with the Sri Lankan authorities on economic and financial reforms and policies," according to a statement from the Washington-based crisis lender.

"The objective is to make progress towards reaching a staff-level agreement" on a funding package "in the near term," said IMF.

As per AFP, IMF said that any loan programme would, however, "require adequate assurances by Sri Lanka's creditors that debt sustainability will be restored" due to the fact that the nation's public debt is "unsustainable."

In the midst of rampant inflation, the country's central bank warned on Thursday that the GDP could decline by more than 8 per cent this year, with inflation topping at 65 per cent.

(With inputs from agencies)

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The International Monetary Fund on Friday said that its team will travel to Sri Lanka next week to resume aid talks. Formal negotiations on a fresh package for the struggling country started in June but were derailed by the political unrest that forced the now ex-president Gotabaya Rajapaksa to resign and then flee after a horde of protestors dramatically overtook the presidential palace.

The International Monetary Fund on Friday said that its team will travel to Sri Lanka next week to resume aid talks. Formal negotiations on a fresh package for the struggling country started in June but were derailed by the political unrest that forced the now ex-president Gotabaya Rajapaksa to resign and then flee after a horde of protestors dramatically overtook the presidential palace. Watch | Gravitas: Gotabaya Rajapaksa applies for US green card After months of food, fuel, and medication shortages, the island nation defaulted payments on its $51 billion foreign debt in April and is now seeking assistance from the International Monetary Fund. President Ranil Wickremesinghe has revealed that the loan package under discussion with the IMF is for $2 billion to $3 billion. As per a Reuters report, he also said that he will publish an interim budget in September that would emphasise the fiscal reduction measures negotiated with the IMF. Also read | Situation in Sri Lanka 'stabilised', no need to extend emergency: President Wickremesinghe IMF personnel are scheduled to travel to Colombo from August 24 to August 31 "to continue discussions with the Sri Lankan authorities on economic and financial reforms and policies," according to a statement from the Washington-based crisis lender. "The objective is to make progress towards reaching a staff-level agreement" on a funding package "in the near term," said IMF. As per AFP, IMF said that any loan programme would, however, "require adequate assurances by Sri Lanka's creditors that debt sustainability will be restored" due to the fact that the nation's public debt is "unsustainable." In the midst of rampant inflation, the country's central bank warned on Thursday that the GDP could decline by more than 8 per cent this year, with inflation topping at 65 per cent. (With inputs from agencies) Watch WION LIVE HERE: You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

IMF-Sri Lanka talks to resume next week

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