Asia Pacific News
LAST UPDATE: July 22, 2025
Sri Lankan President and IMF delegation discuss next review of EFF
Sri Lankan President Dissanayake met with the IMF delegation to examine the upcoming review under the Extended Fund Facility, highlighting economic stability gains and discussing policy reforms to attract investment and improve tariffs.
Insight
The meeting signals Sri Lanka’s commitment to IMF-backed reforms and economic stability, indicating a positive tone for investor confidence and opening discussions about structural adjustments to support growth.
Sri Lanka’s consumer prices climb 0.3% year-on-year in June
Consumer prices in Sri Lanka rose by 0.3 % year‑on‑year in June, marking a slowdown from a 0.6 % rise in May, reflecting continued recovery from the financial crisis.
Insight
Though inflation has cooled, the modest rise in prices suggests stabilization, supporting the IMF review process; however, sustained efforts are needed to anchor inflation further and revive purchasing power.
Indonesia says 19% US tariff might kick in before August 1
Indonesia’s Economic Minister Airlangga Hartarto warned that a 19 % US tariff on Indonesian exports could come into effect before the August 1 deadline, pending final agreements in their recent trade deal.
Insight
The warning highlights fragile tariff negotiations and the urgency for Indonesia to finalize details to avoid abrupt trade disruptions; timing will be critical for exporters.
Bangladesh Plans to Purchase US Wheat as Tariff Threat Looms
Bangladesh has signed an MoU to import around 700,000 MT of US wheat annually over five years to strengthen cooperation and mitigate threats of US tariffs, currently planned at 35 % on Bangladeshi exports from August 1.
Insight
This strategic move shows Bangladesh using imports to leverage tariff negotiations, aiming to balance its trade relationship with the US amid pressures, though long-term dependency on wheat imports should be monitored.
Philippines’ Marcos to meet Trump hoping to secure trade deal
Philippine President Ferdinand Marcos Jr will meet President Trump in Washington this week to negotiate tariff terms—expected to reach 20 %—ahead of the August 1 deadline, seeking better conditions than those for Vietnam (20 %) and Indonesia (19 %).
Insight
Marcos aims to exploit strategic alliances to gain a more favorable tariff outcome, showing the pivotal role of diplomacy in trade and reflecting Southeast Asia’s increasing U.S. economic focus.
Yen Advances as Ishiba Holds On in Face of Election Setback
The yen strengthened after PM Ishiba announced he would remain in office despite his coalition’s upper house election setback, which had weakened political stability.
Insight
Currency markets reacted to Ishiba’s stance as a potential anchor amid political uncertainty; however, the risk of ongoing instability may re-emerge unless he secures trade and economic policy coherence.
Japan PM Ishiba vows to stay on after bruising election defeat
PM Shigeru Ishiba vowed to stay in office despite his ruling coalition losing its upper house majority, aiming to pursue trade talks while facing internal party challenges and rising populist opposition.
Insight
His decision underscores the need for continuity in trade negotiations with the U.S. amid economic pressures, but political fragmentation could hamper decisive policymaking, threatening stability.
