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Ranil Wickremesinghe, a veteran lawmaker and former premier, has been named Sri Lanka’s next prime minister days after the last incumbent, the brother of President Gotabaya Rajapaksa, resigned in the face of escalating anger with the deepening economic crisis, Bloomberg News reported. The president’s media unit confirmed the appointment Thursday in a text message. No other details were immediately available. The announcement may bring a modicum of stability to the country, which is on the verge of bankruptcy and needs a government to lead bailout talks with the International Monetary Fund.
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Sri Lanka’s central bank chief imposed more capital controls and threatened to resign if politicians fail to return stability to the nation in the grip of its worst economic crisis since independence, Bloomberg News reported. “I took on this responsibility with expectations that political stability will be established,” Governor Nandalal Weerasinghe said at a briefing in Colombo Wednesday. “It’s been more than a month with no progress.
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State-controlled carrier Garuda Indonesia has asked a Jakarta court to extend for the third time its deadline to complete its debt-restructuring process, its CEO said, as the verification of claims is still unfinished, Reuters reported. Garuda proposed a 30-day extension time to verify claims and finalise negotiation with the creditors, CEO Irfan Setiaputra said during a creditors meeting at the Central Jakarta Commercial Court on Tuesday.
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The National Company Law Tribunal (NCLT) has ordered the initiation of insolvency proceedings against Birla Tyres Ltd. in a case filed by multi-business chemicals firm SRF Ltd., an operational creditor of the BK Birla group firm, The Hindu reported. A two-member Kolkata bench of the NCLT has also appointed Seikh Abdul Salam as Interim Resolution Professional (IRP) to run the operations of the company after suspending the board and also declared a moratorium as per the procedures of the Insolvency & Bankruptcy Board (IBC).
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An abrupt halt of Russian gas exports could see economies in emerging Europe, central Asia and north Africa slide back to pre-pandemic GDP levels, the European Bank for Reconstruction and Development (EBRD) warned on Tuesday, Reuters reported. Many countries in the EBRD's region of operation, which covers some 40 economies stretching from Mongolia to Slovenia and Tunisia, depend on Russian gas and a sudden ceasing of supplies would lower output per capita by 2.3% this year and 2% in 2023, according to the lender's latest report.
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For years, as Japan tried to boost its chronically weak economic growth, it pursued what its central bank saw as a magic formula: stronger inflation and a weaker yen, the New York Times reported. It didn’t quite work as intended. Inflation never met the government’s modest target, despite rock-bottom interest rates and heaps of fiscal stimulus. Workers’ wages stagnated, and growth remained anemic. Now, Japan is suddenly getting what it wished for — just not in the way it had hoped.
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China's central bank said on Monday it would step up support for the slowing economy, while closely watching domestic inflation and monitoring policy adjustments by developed economies, Reuters reported. The People's Bank of China (PBOC) will keep liquidity reasonably ample, prioritise stability and take steps to boost confidence, the bank said in its first-quarter monetary policy implementation report.
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As inflation soars around the world, the world’s second-largest economy has kept it at bay. Consumer prices in China increased just 1.5% in March from a year earlier, after rising 0.9% in 2021 from the year before, WSJ Pro Bankruptcy reported. By contrast, the U.S. annual inflation rate was 8.5% in March and 7.5% in 2021, the steepest since 1982. In the eurozone, annual inflation reached a record 7.5% in April. Some 71% of 109 emerging and developing economies experienced 5% or higher inflation in 2021, twice as large as at the end of 2020, the World Bank says.

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China's new yuan loans are expected to have dropped in April after a rebound in March as credit demand weakened, a Reuters poll showed, even as the central bank keeps policy accommodative to support the slowing economy, Reuters reported. The Chinese economy has taken a hit as authorities raced to stop the spread of record COVID-19 cases, which have led to a full or partial lockdown in dozens of Chinese cities, including a city-wide shutdown in the commercial hub of Shanghai in April.
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India’s central bank is intervening in all foreign-exchange markets and will continue to do so to protect the rupee that slid to a record low Monday, Bloomberg News reported. The Reserve Bank of India sees its foreign-currency reserves of about $600 billion as a formidable stockpile that it will put to use against speculators. The RBI is seeking an orderly depreciation. The rupee dropped as much as 0.8% to an unprecedented 77.53 a dollar on Monday, as foreigners continue to pull money from Indian stocks.
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