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Postponing reforms will make Sri Lanka lag behind peers, central bank warns

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Postponing reforms will make Sri Lanka lag behind peers, central bank warns

Post by The Invisible on Wed Oct 31, 2018 9:22 am

ECONOMYNEXT – Postponing planned economic reforms will make Sri Lanka more vulnerable to external and internal shocks and stall growth, causing the island to lag behind regional peers, the central bank has warned.

“It is important to facilitate private sector led growth with prudent, consistent and far reaching reforms that support increased productivity in the economy,” it said in its half yearly report on recent economic developments and prospects for 2019.

This was in the backdrop of tightening policy spaces in the monetary, fiscal and external fronts amid subdued economic performance, the central bank said.

“Recent experience has once again displayed the importance of strengthening the economy through structural transformation, while improving the country’s macroeconomic fundamentals,” it said.

“The postponement of much needed structural reforms will only lead to the Sri Lankan economy lagging behind its regional peers, amidst increased vulnerability to internal and external disturbances.”

Therefore, the central bank said, it is essential that such reforms are expeditiously implemented within a transparent framework for Sri Lanka to progress as an upper middle income economy where its human and physical resources are fully utilised in a more productive manner.

(COLOMBO, 31 October, 2018)
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