Asia Roundup
IMF Reaches Staff-Level Agreement with Sri Lanka on $700 Million Funding
IMF staff and the Sri Lankan authorities have reached staff-level agreement on economic policies to conclude the combined fifth and sixth reviews of Sri Lanka’s reform program, according to IMF’s statement. Once the review is approved by the IMF Executive Board, Sri Lanka will have access to about USD 700 million in financing.
The economic reforms implemented by the Sri Lankan authorities have continued to support the recovery, with reserves accumulating and real GDP growth and revenue mobilization outperforming expectations, according to the IMF.
“However, Sri Lanka is significantly exposed to the Middle East conflict and needs to build back better following Cyclone Ditwah.”
Asian Airlines Hoard Liquidity to Survive Worst Oil Shock Since 1980s
Asian airlines are shifting their focus from capacity growth to liquidity preservation as an infrastructure-led oil shock weighs heavily on industry margins, The Business Times reported, citing Thai Airways chief executive Chai Eamsiri.
Carriers are now in survival mode after the destruction of Middle East oil infrastructure and the effective closure of the Strait of Hormuz on 2 March. Aviation leaders noted that it will take months for the global jet fuel supply to stabilise.
China Considers Financial Aid for Airlines Hit by Oil Shock
China is considering financial relief and other measures for its struggling state-run airlines as the Iran war sends fuel costs soaring, in what could be the industry’s biggest lifeline since the Covid pandemic, Bloomberg reported, citing people familiar with the matter.
Government subsidies, preferential tax treatment and state-backed low-interest loans are options being explored by authorities. Mergers are also being considered.
Indonesia Roundup
Indonesia Aims to Cut Hajj Costs Despite Fuel Spike
Indonesia aims to reduce Hajj costs by about IDR 2 million (USD 117) per pilgrim despite the increase in fuel prices, Bernama reported on 9 April 2026. This reflects the government’s commitment to protect the lower-income community, President Prabowo Subianto was quoted as saying.
Acrostics Asia wrote on 8 April 2026 that the president’s suggestion for Garuda Indonesia to explore a joint venture with Saudi Arabia’s flag carrier may make sense on paper, but any traction depends on whether the Middle East nation would seriously consider the proposed joint venture.
Acrostics Asia also noted yesterday that Garuda will likely try to avoid a major increase in pilgrimage fares given the political sensitivity in Indonesia.
Danantara Orders Construction SOEs to Complete Restructurings Before Merger
Indonesian sovereign fund Danantara has ordered the state-owned builders to complete their restructurings before a planned merger by the end of this year, Bisnis reported.
One of the construction SOEs, Wijaya Karya, aims to restructure its bank loans and bonds by June 2026, so the Indonesia Stock Exchange will allow its suspended shares to resume trading in the second half of this year.
Danantara to Consolidate SOEs in Sugar Sector
Danantara is consolidating the state-owned enterprises in the sugar sector, CNN Indonesia reported, citing the sovereign fund’s Chief Operating Officer Dony Oskaria.
The sugar factories owned by ID Food should be transferred to Sinergi Gula Nusantara or Sugar Co, according to the report.
Acrostics Asia is an independent Asia credit intelligence provider that takes end-to-end ownership of its signals – from origination to production and distribution.