Sri Lanka’s external sector recovered further in July 2020 supported by an increase in merchandise exports and increased workers’ remittances amidst reduced merchandise imports, the Central Bank announced.
Sri Lanka is in a catch-22 situation of tackling massive public debt restructuring in the next three months with an unprecedented debt load of Rs.3.05 trillion for 2020, surpassing the earlier estimate of Rs. 2 trillion, official data showed.
The economic data or statistics of a country usually replicates the true picture of that country whilst allowing international institutions to know the country’s position in comparison with its regional countries.
Sri Lanka is likely to lose the Extended Fund Facility (EFF) of the International Monetary Fund (IMF) that would also unlock substantial multilateral and bilateral financing (possibly debt relief as well), increasing the prospects of improving the sovereign rating.