Asia Pacific News
LAST UPDATE: June 18, 2025
IMF’s Gita Gopinath to Sri Lanka: ‘Stay the Course or Risk Repeating 2022’
IMF First Deputy MD Gita Gopinath praised Sri Lanka for reducing inflation from 70% to –0.7% and achieving 5% growth, but warned against complacency, urging the country to continue reforms or risk reverting to crisis. (m.facebook.com, newsfirst.lk)
Insight
Gopinath emphasizes that despite significant progress, the momentum of reforms must not falter, as premature relaxation could reverse gains and lead to another crisis.
IMF to evaluate Sri Lanka’s fourth review on July 01 – Gopinath
Dr. Gopinath announced the IMF Executive Board will assess Sri Lanka’s fourth review under its program on July 1, noting marked improvement in macroeconomic stability and urging continued progress.
Insight
The July 1 review is a pivotal milestone—its successful conclusion would unlock another tranche of IMF support, reinforcing Sri Lanka’s path to recovery, but hinges on sustained policy discipline.
Sri Lankan PM Meets IMF’s Gopinath on Recovery, Reforms
Prime Minister Mahinda Rajapaksa met with Dr. Gopinath, discussing the ongoing reform program. Gopinath reiterated IMF’s firm support for Sri Lanka’s recovery and emphasis on governance reforms.
Insight
The meeting highlights strong alignment between Sri Lankan leadership and the IMF, setting the stage for deeper reforms and transparent recovery efforts supported by international institutions.
Mongolian MPs hold meeting with IMF staff team
Mongolian lawmakers met IMF staff and World Bank officials to discuss economic trends, policies, and budgeting. A formal report on recommended policies is expected by autumn.
Insight
This engagement signals Mongolia’s proactive dialogue with international financiers, aiming to shape policies ahead of key budgetary decisions and set the stage for potential future funding.
China’s Xi in Kazakhstan to cement ‘eternal’ Central Asia ties
President Xi attended the China–Central Asia Summit in Astana, signing a treaty of “permanent good‑neighbourliness and friendly cooperation.” The deal expands partnerships in trade, energy, infrastructure, and includes $208 m in grants.
Insight
The treaty strengthens China’s strategic position in Central Asia, countering Russian influence, expanding the Belt & Road Initiative, and enhancing regional integration and supply chains.
Australia’s re‑elected government focused on economic resilience, treasurer says
On June 17, Treasurer Jim Chalmers told the National Press Club that although Australia’s economy is growing and the budget strengthened, productivity and resilience remain weak. With risks from U.S. tariffs and Middle East instability, the government plans more rate cuts (from 3.85% to 3.1%), productivity improvements, and fiscal sustainability measures. (reuters.com)
Insight
Chalmers is recalibrating policy to reinforce long-term stability—addressing structural weaknesses and external risks while continuing cautious economic support via rate cuts.
India’s Modi visits Croatia with EU trade on agenda
On June 17–18, PM Narendra Modi made the first-ever visit by an Indian PM to Croatia, aiming to deepen economic ties. Discussions focus on the India–Middle East–Europe trade corridor, and exploring a future India–EU Free Trade Agreement. Four agreements covering agriculture, science, culture, and education—including a Hindi Chair at Zagreb University—are expected.
Insight
Modi’s visit signals a strategic push to diversify India’s trade partnerships through Europe, using Croatia as a gateway for broader EU engagement and supporting momentum toward a Free Trade Agreement.
India regulator says no ‘major safety concerns’ on Air India’s Boeing 787 fleet
India’s DGCA found no major safety issues in Air India’s Boeing 787 fleet following a crash that killed 271 people, after enhanced inspections of 24 out of 33 planes. It stressed compliance with regulations, improved coordination, and sufficient spare parts to prevent delays. (reuters.com)
Insight
While the regulator cleared the aircraft model, it spotlighted maintenance and operational coordination at Air India, signaling the next phase of safety reforms under heightened scrutiny.
