More than 75 people were in the building when the blaze broke out on Friday evening
Asia3 days ago
Sri Lanka announced on Monday the closure of three overseas diplomatic missions in a bid to save foreign currency reserves, as the country’s central bank slapped tighter controls on dollars needed to finance essential imports.
The Sri Lankan High Commission (embassy) in Nigeria and consulates in Germany and Cyprus will be closed from January in the restructuring, the foreign ministry said.
“The restructuring is undertaken with a view to conserving the country’s much needed foreign reserves and minimising expenditure related to maintenance of Sri Lanka’s missions overseas,” the ministry said in a statement.
The island’s tourism-dependent economy was hammered by the pandemic and the government in March last year imposed a broad import ban to shore up forex reserves, triggering shortages of essential goods such as fuel and sugar.
The closure of the three missions came on the same day the Central Bank of Sri Lanka tightened restrictions on foreign currency remittances received by locals.
It ordered all commercial banks to hand over a quarter of their dollar earnings to the government, up from 10 per cent.
This means banks will have even fewer dollars to give to private traders who are importing essential goods.
Sri Lanka had foreign reserves of just $1.58 billion at the end of November, down from $7.5 billion when President Gotabaya Rajapaksa took office in 2019.
The central bank has appealed for foreign currency — even the loose change of people returning from overseas trips.
Earlier this month, ratings agency Fitch downgraded Sri Lanka due to mounting fears of a sovereign default on its $26 billion foreign debt.
The government insisted it can meet its obligations.
Food shortages have been worsened by the government’s ban on agrochemical imports, which was lifted last month after widespread crop failures and intense farmer protests.
More than 75 people were in the building when the blaze broke out on Friday evening
Asia3 days ago
Food security is at risk, says the country
Asia3 days ago
The suit-clad prime minister, who is more comfortable in English than Sinhala and less popular with the majority lower middle-class population, could be the answer to Sri Lanka’s unprecedented economic crisis for now
Asia3 days ago
The country's president said forming a judicial commission would prevent the ignition of a 'political powder keg'
Asia4 days ago
The attack seemed to target a van carrying security forces
Asia4 days ago
Sanjeev and Sadhana Prasad say they exhausted their savings raising, educating their pilot son and paying for his lavish wedding
Asia4 days ago
He is widely accepted as a man who could manage the economy with far-sighted policies
Asia4 days ago
Japan’s defence ministry also confirmed the launch
Asia5 days ago