Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Asian Development Bank vows more help for crisis-hit Sri Lanka

Forex Sep 27, 2022 05:01AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: President of the Asian Development Bank (ADB) Masatsugu Asakawa speaks at the Sydney Energy Forum in Sydney, Australia July 12, 2022. Brook Mitchell/Pool via REUTERS

By Karen Lema and Tetsushi Kajimoto

MANILA/TOKYO (Reuters) - The Asian Development Bank (ADB) is ready to provide further financial support to Sri Lanka, a top official of the regional lender said on Tuesday, as the Indian Ocean nation battles its worst economic crisis in more than seven decades.

The remarks came after an ADB pact this month for an emergency loan of $200 million to ensure access to food and protect livelihoods after months of shortages of key essential items which sparked protests that forced out the president.

"As a key long-term partner, the ADB stands ready to provide further support," the bank's president, Masatsugu Asakawa, told reporters at its annual gathering.

Sri Lanka's economy has contracted and it is suffering from very high inflation severely affecting living standards, Asakawa said. The annual figure exceeded 70% in August.

"So we are working closely with the government in supporting the country in this challenging time," he added.

Asakawa said he was confident Colombo was working to finalise a staff-level agreement with the International Monetary Fund (IMF) for a loan of about $2.9 billion, by seeking financing assurances from creditors, among other steps.

"After the IMF program is completed, we will consider to join another, by providing additional financial resources to join other rescue packages for Sri Lanka," said Asakawa, a former Japanese vice finance minister for international affairs.

Asakawa pointed to the risks of abrupt capital outflows from Asia and the prospect of very sharp currency depreciation continuing for some time, as the U.S. central bank tightens monetary policy aggressively.

However, Asia has become more resilient against financial turmoil, with an improved current account balance and sufficient accumulation of foreign reserves, than it was during the Asian financial crisis of the late 1990s, he added.

Yet portfolio capital movement is very fast and volatile, Asakawa said.

"It's always a good thing to be very vigilant on this broader capital movement," he added.

"I'm also trying to enhance our regional financial co-operation efforts, including that of ASEAN+3," he said, referring to a grouping of China, Japan and South Korea with southeast Asian nations.

Asian Development Bank vows more help for crisis-hit Sri Lanka
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email