Tough year ahead for international aid
View(s):Sri Lanka now faces escalating economic headwinds following the sudden change in premiership and the cabinet with a single stroke of the pen by President Maithripala Sirisena.
At a time of government transition, international agencies and foreign countries are keeping an anxious eye on the country’s present decision-makers wondering whether they have the plans, skills and resilience to cope with present economic challenges.
It is still premature to predict the ability of the present administration to navigate more turbulent waters ahead and rescue the country from a grave debt trap, economic analysts said.
Foreign investors cut holdings of local stocks by US$0.9 million recently, taking outflows in October to $39.7 million, Finance Ministry data showed.
Responding to an email query, a spokesman of the International Monetary Fund (IMF) told the Business Times that they are closely monitoring the present economic and political situation in the country. The IMF has taken note of recent developments in the island nation, he said adding that they remain in contact with their technical counterparts and it is premature to assess the fund supported programme implications.
Sri Lanka is waiting to receive the sixth IMF tranche of about SDR 177.77 or US$ 250 million of the loan facility soon.
(BS)