The Sri Lankan rupee (LKR) has depreciated by 10% in nominal terms by end September 2018, posing significant economy-wide risks in view of a hefty total external debt stock at 60% of GDP at end 2017. In this context, the author argues that the Sri Lankan economy is set to face testing times; dollar revenues need to be generated to match dollar-denominated debt service as never before.
The Sri Lankan economy appears to be suffering from a growing debt crisis and is facing a risky external sector outlook in the near term. According to Central Bank’s 2016 Annual Report, the total general government external debt has grown by 10% in 2016 to US$ 27.2 billion. This article by Dushni Weerakoon analyses whether Sri Lanka is making progress in terms of getting its debt overhang under control.
This article takes a look at Sri Lanka’s status and what the country needs to do with regard to its economy, in terms of the IMF Programme.
This article looks at the implications of over-due re-basing exercise on the size of the Sri Lankan economy, its sectoral composition and growth rates.
In this article Dushni Weerakoon points out the need for Sri Lanka to confront difficult and delayed reforms to make the economy more efficient and competitive.