Recently, the economic situation of South Asian countries has attracted much attention: the Central Bank of India held a monetary policy meeting; 

Pakistan is scheduled to announce the budget for 2022-2023 on June 10; Maturity of Maldives bonds, etc.

In this regard, Mattias martinsson, chief investment officer of Sweden, said on the 7th that South Asia is currently in the "eye of the storm": "the South Asian market will be 

very painful in the coming months. We are likely to see an increase in inflation and interest rates and a devaluation of the currency."

India

Due to the rise in international commodity prices, the consumer price index of India, the largest economy in South Asia, rose by 7.79% in April, the highest level since 2014.

By the middle of May, the foreign exchange reserves had been reduced for nine consecutive weeks. However, some observers said that India's foreign exchange reserves of 

about US $600billion (about 4trillion yuan) were enough.

Pakistan

According to the data of the National Bank of Pakistan, Pakistan's foreign exchange reserves decreased from US $24billion last autumn to US $16.4 billion at the end of April this 

year. At the beginning of this year, its foreign debt accounted for nearly 35% of GDP.

With the meeting of the interest rate setting Committee of the Bank of India, the market expects that the Bank of India will continue to raise interest rates. The yield of Indian 

sovereign bonds exceeded the level of 7.5% for the first time in three years. Under the background of global tightening policies, the yield of Indian government bonds jumped 

by more than 112 basis points in 2022.

Sri Lanka's 

Sri lanka's economic crisis continues, and Sri Lanka's official data show that its foreign exchange has been less than 25million US dollars. Because of the extreme shortage of 

foreign exchange reserves, its foreign debt accounts for nearly 58% of GDP, debt default, power crisis and other problems follow.

The food shortage problem is particularly prominent. The year-on-year inflation rate of food in Sri Lanka rose from 46.6% in April to 57.4% in May. The sharp rise in food prices 

means that the country's food security has been undermined. Sri Lanka is seeking international assistance to finance drug imports.

In response, the first batch of emergency humanitarian aid materials provided by China have arrived at Bandaranaike International Airport in Colombo, Sri Lanka. Subsequently, 

the Chinese side will also distribute and transport other urgently needed materials to Sri Lanka, so as to alleviate the continuing economic and social crisis in Sri Lanka.

Nepal

The macroeconomic stability of Nepal has also received attention. In April this year, the Nepalese government suspended the governor of the Central Bank of Nepal on the 

grounds that he had not done enough to maintain foreign exchange reserves. As of the middle of April, Nigeria's foreign exchange reserves have decreased by 18.2% (in US 

dollars), while in the middle of March this year, they have decreased by 18.5%.

Maldive

Maldives' US $250million bonds matured on June 7. The Ministry of finance of Maldives told local media that there was no risk of default. However, JPMorgan Chase of the 

United States still included Maldives in the list of default risks by the end of 2023.