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The government is hopeful of receiving US$700 million from the International Monetary Fund (IMF) on May 27, the Deputy Minister of Finance and Planning, (Prof.) Anil Jayantha Fernando has stated.

Speaking in Parliament today (21), the Deputy Minister said Sri Lanka is continuing efforts to strengthen foreign exchange inflows through exports, foreign remittances and international financial assistance.

He expressed confidence that the IMF Executive Board would approve the release of the next tranche amounting to US$700 million later this month.

Deputy Minister Anil Jayantha further stated that Sri Lanka could also obtain up to US$480 million from the Asian Development Bank (ADB) during this year.

In addition, he said the country was expecting US$150 million from the World Bank and another US$50 million from an affiliated institution.

The Deputy Minister noted that the government did not anticipate any major difficulties in managing the country’s foreign exchange situation.

Prime Minister Dr. Harini Amarasuriya has held a bilateral meeting with Yvette Cooper MP, the Foreign Secretary of the United Kingdom. 

The Prime Minister was accompanied by Sri Lanka’s High Commissioner to the United Kingdom, Nimal Senadheera, along with officials from the Sri Lankan High Commission.

Prime Minister Amarasuriya is currently undertaking an official visit to the UK to participate in the 43rd Commonwealth of Learning (COL) Board of Governors Meeting 2026.

During the meeting, the Prime Minister conveyed Sri Lanka’s appreciation to the United Kingdom for the support extended in the aftermath of the Cyclone Ditwah, including ongoing rebuilding and recovery assistance, the Office of the Prime Minister said in a statement. The Prime Minister also commended the United Kingdom’s support in facilitating increased bilateral trade and exports for Sri Lanka.

Prime Minister Amarasuriya briefed the UK side on Sri Lanka’s recent economic developments and policy priorities, the government’s commitment to advancing human rights and reconciliation, as well as Sri Lanka’s positive growth trajectory.

The two sides also exchanged views on current global geopolitical developments, challenges in the energy sector, and the importance of enhancing regional connectivity and long-term energy security, according to the Prime Minister’s Office.

Both sides also emphasised the importance of strengthening structured academic mobility frameworks while ensuring fairness, clarity, and integrity within migration systems.

Both factions reaffirmed their commitment to further strengthening bilateral cooperation between the two countries in areas of mutual interest, the Prime Minister’s Office added.

Tamil Nadu Chief Minister Joseph Vijay expanded his Cabinet today with the induction of 23 MLAs in the Council of Ministers. 21 MLAs from Vijay's TVK party and 2 from the ally Congress took oath as ministers in the new government. 

Two of the important allies, the IUML and the VCK, are not part of the Cabinet expansion. Both the parties with two MLAs each are crucial to the numbers of the TVK government. Sources have told NDTV that both IUML and VCK have been allocated one Cabinet berth each, but they have not yet named their picks yet. Both the partners will be inducted into the government at a later stage, sources said.

The TVK leadership continued to invite VCK, CPI, CPM and IUML - which are presently extending outside support to the government, to formally join the coalition ministry. 

“Chief Minister has reiterated it. That is his wish and dream too. We expect good news. We'd want VCK chief Thol Thirumavalanan too to join the cabinet,” Tamil Nadu Public Works and Sports Minister Aadhav Arjuna had said on Tuesday.

Vijay took oath of office alongwith nine ministers on May 10. 

He can have 35 ministers in his Cabinet (15% of the Assembly strength). With 23 new ministers joining in today, it takes the number of ministers in the Vijay government to 32, which leaves him with 3 berths for allies like VCK and IUML. 

The two Congress MLAs to join the Vijay-led government are Rajesh Kumar and Thiru P. Vishwanathan. 

This is the first time in nearly six decades that the Congress is going to be part of the government in Tamil Nadu. 

The last time Congress ran a government was under M. Bhaktavatsalam who served as the last Congress Chief Minister, concluding his term in March 1967. 

In the historic 1967 assembly elections, the party was defeated by the Dravida Munnetra Kazhagam (DMK) led by CN Annadurai. Since then, Congress has never been part of any government in the state till now when it joined the Vijay-led cabinet.

Source: NDTV

– Agencies

The Sri Lankan Rupee continues to weaken against the US Dollar amidst multiple factors including the ongoing conflict in the Middle East.

The selling rate of the US dollar exceeded Rs. 350 today (21), according to the latest daily exchange rates issued by the Central Bank of Sri Lanka.

The Central Bank stated that the buying rate of the US dollar was recorded at Rs. 342.63, while the selling rate stood at Rs. 354.03.

Yesterday (20), the buying rate of the US dollar was recorded at Rs. 332.23, while the selling rate was recorded at Rs. 342.70.

The Reserve Bank of India is considering all of its available options to stabilise the rupee, including an interest rate hike, more currency swaps and raising dollars from investors overseas, according to people familiar with the matter.

Top officials at the RBI, including Governor Sanjay Malhotra, have held a series of internal meetings to discuss the possible course of actions available after the rupee plunged to a fresh low of almost 97 to a dollar this week, the people said, asking not to be identified because the discussions are private.

One of the options on the table is raising interest rates, one of the people said. The next scheduled monetary policy decision is on June 5, although the RBI has previously made an out-of-cycle adjustment in May 2022.

Other measures include raising dollars overseas through a deposit scheme for non-resident Indians and selling a sovereign dollar bond, another person said. The latter would be decided by the government, the person said.  The measures under consideration mirror some of those taken during the 2013 taper tantrum period. India provided a deposit scheme for non-residents through local banks at the time to spur foreign currency inflows. The RBI estimates the deposit schemes could draw as much as $50 billion this time around, according to one of the people, compared with about $30 billion previously.

There is an increasing recognition among policymakers that the rupee is tumbling faster than anticipated, according to the people, who are familiar with the RBI's thinking. Policymakers are of the opinion that India's economic fundamentals remain strong and the banking system is sound, but that strength is not being reflected in the exchange rate, they said.

The RBI didn't respond to an email seeking further information.

The top priority for the central bank now is to stop the depreciation, and the RBI is ready to do whatever it takes to achieve that, one of the people said.

Raising borrowing costs would help spur foreign bond inflows by widening the interest rate differential between the US and India, which has narrowed to over a decade low. Investors have dumped Indian assets this year, with foreign fund outflows from stocks so far in 2026 surpassing last year's record $19 billion.

The RBI's six-member monetary policy committee is scheduled to meet June 3-5. The committee has kept its benchmark rate unchanged at 5.25% this year, although most economists predict a hike in coming months as inflation accelerates. On Wednesday, the RBI announced a $5 billion swap auction to infuse liquidity in the banking system and also boost the RBI's dollar reserves in the immediate term. There could be more of such swap auctions, people familiar with the matter said.

Source: NDTV

– Agencies