{"id":238088,"date":"2023-04-15T20:33:45","date_gmt":"2023-04-15T15:03:45","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=238088"},"modified":"2023-04-17T13:40:51","modified_gmt":"2023-04-17T08:10:51","slug":"economic-distress-in-sri-lanka-life-debt-india-france-japan-initiative-crucial-for-colombo","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/economic-distress-in-sri-lanka-life-debt-india-france-japan-initiative-crucial-for-colombo\/","title":{"rendered":"Economic distress in Sri Lanka: Life & Debt – India-France-Japan initiative crucial for Colombo"},"content":{"rendered":"\n

S<\/strong>ource<\/strong>: The post is based on the article\u00a0\u201cLanka: Life & Debt – India-France-Japan initiative crucial for Colombo\u201d <\/b>published in\u00a0The Times of India <\/b>on\u00a015th April 2023<\/b>.<\/p>\n

Syllabus<\/strong>: GS \u2013 2: India and its neighbourhood- relations.<\/p>\n

Relevance<\/strong>: About economic distress in Sri Lanka.<\/p>\n

News<\/strong>: Recently, Sri Lanka received a $2. 9 billion package from IMF<\/a><\/strong>. Following that,\u00a0India, Japan and France have set up a common platform for talks among Sri Lanka\u2019s creditors to work out ways to restructure the country\u2019s external debt.<\/p>\n

About the present state of economic distress in Sri Lanka<\/h2>\n

Sri Lanka’s average inflation in 2023 is projected to be 28. 5% even as the economy is expected to shrink 3.1%. But, Sri Lanka\u2019s current account deficit in 2023 is projected to be 1. 6% of GDP, a manageable level.<\/p>\n

The greatest distress of the Sri Lankan economy at present is its aggregate external debt, which is 74% of its GDP. Sri Lanka is having arrears to almost all of its external creditors. The country has also obtained financing assurances from all major creditors.<\/p>\n

Note<\/strong>: China is the major creditor of Sri Lanka.\u00a0<\/em><\/p>\n

What led to the economic distress in Sri Lanka?<\/h2>\n\n\n\n
Read here: Causes Behind Sri Lanka crisis<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

What are the objectives of the economic restructuring package for Sri Lanka?<\/h2>\n

The key aim of Lanka\u2019s economic restructuring package is to lower its annual debt service in foreign exchange from the current 9% of GDP to 4. 5% by 2027. This will require the country to lower its public debt from the current level of 122% of GDP.<\/p>\n\n\n\n
Read more:\u00a0<\/strong>In Sri Lankan crisis, a window of economic opportunity<\/strong><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cLanka: Life & Debt – India-France-Japan initiative crucial for Colombo\u201d published in\u00a0The Times of India on\u00a015th April 2023. Syllabus: GS \u2013 2: India and its neighbourhood- relations. Relevance: About economic distress in Sri Lanka. News: Recently, Sri Lanka received a $2. 9 billion package from IMF. Following that,\u00a0India,… Continue reading Economic distress in Sri Lanka: Life & Debt – India-France-Japan initiative crucial for Colombo<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,11407,11408,10496],"class_list":["post-238088","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-india-france-japan-initiative","tag-srilanka-economic-distress","tag-times-of-india","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704888605},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/238088","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=238088"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/238088\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=238088"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=238088"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=238088"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}