FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

Click Link to get instant AI answers to all business queries.
Click Link to find latest Economic Outlook of Sri Lanka
Click Link to view latest Research and Analysis of the key Sectors and Industries of Sri Lanka
Worried about Paying Taxes? Click Link to find answers to all your Tax related matters
Do you have a legal issues? Find instant answers to all Sri Lanka Legal queries. Click Link
Latest images

Latest topics

» Excellent Report pending From CTC (Keep eye on CTC )
by ddrperera Today at 7:11 pm

» CSE ready for another Downtrend?
by DeepFreakingValue Today at 3:34 pm

» Ceylon cold stores
by Beyondsenses Today at 11:21 am

» Investor Alert: Sri Lanka Stock Brokering Mafia Strongly Active!
by D.G.Dayaratne Today at 6:29 am

» CENTRAL INDUSTRIES PLC (CIND.N0000)
by D.G.Dayaratne Yesterday at 9:39 pm

» What are the key aspects of the Online Safety Act?
by God Father Tue Feb 27, 2024 10:35 pm

» TAFL is the most undervalued & highly potential counter in the Poultry Sector
by Investment 1st Tue Feb 27, 2024 9:00 pm

» How to defeat Ranil Wickramasinghe at the next Presidential Elections
by empire Sat Feb 24, 2024 10:34 am

» FINANCE AND LEASING SECTOR
by ApolloCSE Sat Feb 24, 2024 1:35 am

» Why Foreign Sales have gone up during last few days
by D.G.Dayaratne Fri Feb 23, 2024 10:21 am

» Market Performance (2022-2024)
by D.G.Dayaratne Fri Feb 23, 2024 6:10 am

» Richard Pieris Exports PLC (REXP.N0000) future looks bleak!
by God Father Wed Feb 21, 2024 3:34 pm

» ANALYSIS: Sri Lanka Car Market 2024
by D.G.Dayaratne Mon Feb 19, 2024 11:14 am

» LOLC Group's stunning performance goes beyond numbers!
by samaritan Mon Feb 19, 2024 10:57 am

» RED ALERT!! from Richard Pieris and Company PLC
by ChooBoy Sun Feb 18, 2024 10:28 pm

» Sri Lanka: China EXIM Bank Debt Moratorium to End in 2024
by God Father Sun Feb 18, 2024 8:29 am

» IPO Failures in Sri Lanka
by God Father Sun Feb 18, 2024 8:21 am

» HOTEL AND TRAVEL SECTOR
by ErangaDS Sat Feb 17, 2024 9:57 pm

» Treasury Bill is an option of Fixed income
by ResearchMan Sat Feb 17, 2024 2:31 pm

» CONSTRUCTION SECTOR
by Gaudente Thu Feb 15, 2024 7:40 pm

» LOLC FINANCE PLC (LOFC.N0000)
by Equity Win Wed Feb 14, 2024 7:14 pm

» CENTRAL FINANCE COMPANY PLC (CFIN.N0000)
by Gaudente Wed Feb 14, 2024 3:28 pm

» Natural Gas Faces Steep Decline
by ResearchMan Wed Feb 14, 2024 1:17 pm

» CSE geared into BULL mode
by deli Tue Feb 13, 2024 8:31 pm

» FIRST CAPITAL HOLDINGS PLC (CFVF.N0000)
by Beyondsenses Fri Feb 09, 2024 10:30 am

LISTED COMPANIES

Submit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)



CHRONICLE™ YouTube

Disclaimer
FINANCIAL CHRONICLE™ Disclaimer

The information contained in this FINANCIAL CHRONICLE™ have been submitted by third parties directly without any verification by us. The information available in this forum is not researched or purported to be complete description of the subject matter referred to herein. We do not under any circumstances whatsoever guarantee the accuracy and completeness information contained herein. FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the contents of this report and acting directly or indirectly in any manner whatsoever. Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility, FINANCIAL CHRONICLE™ blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. The information on this website is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.

Further the writers and users shall not induce or attempt to induce another person to trade in securities using this platform (a) by making or publishing any statement or by making any forecast that he knows to be misleading, false or deceptive; (b) by any dishonest concealment of material facts; (c) by the reckless making or publishing, dishonestly or otherwise of any statement or forecast that is misleading, false or deceptive; or (d) by recording or storing in, or by means of, any mechanical, electronic or other device, information that he knows to be false or misleading in a material particular. Any action writers and users take in respect of (a),(b),(c) and (d) above shall be their own responsibility, FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental violation of securities laws of any country, damages or loss arising out of the use of this information.


AI Live Chat

You are not connected. Please login or register

Sri Lanka in state of panic 1 month after sovereign default

2 posters

Go down  Message [Page 1 of 1]

God Father


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Sri Lanka, dubbed ‘Pearl of the Indian Ocean,’ saw its economy come to standstill following the declaration of moratorium on May 19. Taxi drivers in the largest city of Colombo can hardly buy a can of gasoline after waiting in line at a gas station for three days, while low-income households have no choice but to split one meal into two. Young Sri Lankans who cannot find jobs are staying overnight at the immigration office to seek job opportunities overseas. The government has attempted to overcome the crisis through rationing of fuel, but none of its policy measures have worked since long ago.

The Dong-A Ilbo visited Sri Lanka one month after the country’s declaration of moratorium to find the entire nation is in state of panic as its foreign currency reserves have dried up. The direct cause of its sovereign default is Russia’s invasion of Ukraine. As oil and food prices soared due to the war, the government, companies and households were hardly able to withstand. However, Sri Lanka already had excessive national debts due to populist state policies while its tourism industry, its flagship sector, took hit by the Covid-19 pandemic. As the double whammies of high inflation and slow growth have dealt an additional blow to the economy whose fundamentals had already collapsed, the government ended up declaring sovereign default.

We cannot take Sri Lanka’s default lightly because emerging economies including South Korea cannot be considered completely immune to a similar crisis. If a country fails to improve its economic fundamentals in tune with evolving economic situation amid snowballing national debt, this could spark a national crisis.

More than anything, the financial crisis is dangerous because it can spread rapidly through the flow of money even if countries are remote each other and industries are not interconnected. The Asian financial crisis in 1997 was sparked by Mexico’s national default, which was caused by flight of capital due to the U.S.’ steep hikes of interest rates. Then, the crisis spread to Thailand and the Philippines before putting South Korea in danger. The world needs a security system that can help prevent ‘the spread of a crisis’ starting from Washington’s interest rate hikes to strengthening of the dollar, and to flight of capital from emerging markets.

The Korean government has claimed that Korea has strong economic fundamentals, but the reality is not completely optimistic. While the government is confused over its priority between inflation and growth policy, companies’ facility investment has been declining for three consecutive months. The private sector’s ability to create jobs remain sluggish due to regulations, whereas the nation’s labor productivity is ranked 51st among 63 countries around the world due to rigid labor-management relations. If the U.S. rapidly sucks in money from around the world following the start of tapering, countries with weak economic fundamentals will be inevitably impacted. Korea cannot afford to turn a blind eye to possible ‘domino defaults of countries” originating from Sri Lanka.

https://www.donga.com/en/List/article/all/20220620/3458428/1

reyaz likes this post

reyaz

reyaz
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Those who vote to raise debt ceiling need to check their bloody head.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum