Today: 21 June 2025
27 December 2021
1 min read

Dollar crunch: Lanka hints at tough measures

The debt-trapped island nation has been in a financial crisis, especially with the Covid-19 pandemic, and many foreign imports, including vehicles and food items, have been stopped. …writes Susitha Fernando

Sri Lanka has decided to close three overseas diplomatic missions from December 31 to cut down government expenditure in the face of the on-going financial crisis and dollar crunch.

The Foreign Ministry stated that it has decided to close three of its missions — the Consulate General of Sri Lanka in Frankfurt, Germany, the Sri Lanka High Commission in Abuja, Nigeria, and the Consulate General of Sri Lanka in Nicosia, Cyprus.

“The restructuring is undertaken with a view to conserve the country’s much-needed foreign reserves and minimising expenditure related to maintenance of Sri Lanka’s missions overseas, in the backdrop of the grave economic challenges posed by the global pandemic,” the Foreign Ministry stated.

The activities of the three diplomatic missions are to be covered by the neighbouring diplomatic missions.

Closing down of handpicked foreign missions are expected to save nearly Rs 11 billion or $54 million.

Foreign Ministry spokesman Sugeeshwara Gunaratne had earlier said that the Sri Lankan cabinet took this decision as a measure to help the dollar crisis facing the nation.

The debt-trapped island nation has been in a financial crisis, especially with the Covid-19 pandemic, and many foreign imports, including vehicles and food items, have been stopped.

The central bank has been taking many measures to attract US dollars to the country. On Monday, the central bank directed all local banks to handover 25 per cent of dollars received to the central bank. This is an increase from the earlier ceiling of 10 per cent dollars received by the local banks.

By end of November, Sri Lanka had only $1.58 billion foreign receives and this was a drop from $7.5 billion in November 2019 when President Goatabaya Rajapaksa came to power.

ALSO READ: Lanka Faces Forex Crisis

Previous Story

Russia arms Tajikistan

Next Story

Taliban urged to give Kabul airport to UAE

Latest from -Top News

IAEA sounds nuclear alarm in Iran

UN nuclear watchdog urges restraint, calls for diplomacy to prevent crisis. The head of the International Atomic Energy Agency (IAEA), Rafael Grossi, has issued a stark warning about the potential nuclear fallout

Trump says it’s hard to tell Israel to stop

President downplays European diplomacy as Israeli jets strike over 35 Iranian missile sites US President Donald Trump has said it would be “difficult” to ask Israel to stop its ongoing airstrikes on

War on Children Worsens, Says UN

The new high surpassed 2023, another record year, which itself represented a 21 per cent increase over the preceding year….reports Asian Lite News Violence against children in conflict zones soared to record

US weighs joining fight with Israel

Europe’s push for diplomacy is in sharp contrast to messages from Washington, with President Trump openly weighing bombing Iran  Iran’s foreign minister will meet in Geneva with counterparts from Germany, France and

Kremlin warns US against Iran strike

Putin revealed that Moscow had proposed several compromise frameworks to all involved parties — including the US, Israel, and Iran Washington would be making a serious mistake by launching an attack on
Go toTop

Don't Miss

Former SL Foreign Minister Mangala Samaraweera dies of Covid

Local media quoting medical officers said Samaraweera had developed complications

Next Year’s FAO Conference to be Hosted by Sri Lanka

Sri Lankan Supreme Court ruled that the Rajapaksa brothers and