Eurozone crisis could hit our economy harder
By Namini Wijedasa
Sri Lanka’s shaky economy will get another pummelling as the euro-zone sovereign debt crisis worsens, analysts and industrialists warned last week, while urging policy makers to start steeling the country for it.
But Central Bank Governor Ajith Nivard Cabraal said he did not anticipate a major negative impact. “We don’t need to take any measures right now,” he asserted. “We are watching the situation very closely. We are conducting a review every two weeks or so and if anything is needed we will be ready to step up policy
action.”
A combination of actors expressed fears about the euro-zone crisis and its repercussions for Sri Lanka. Fitch Ratings said that, among emerging economies, Sri Lanka’s sovereign rating was at most risk from the fallout.
“Sri Lanka is most at risk due to its high external-funding needs and weak balance sheet,” Bloomberg newswire quoted Andrew Colquhoun, head of Asia-Pacific sovereign ratings at Fitch, as saying. “The same issues also make India and Indonesia vulnerable compared to similarly graded peers.”
Be ready for it
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By Namini WijedasaSri Lanka’s shaky economy will get another pummelling as the euro-zone sovereign debt crisis worsens, analysts and industrialists warned last week, while urging policy makers to start steeling the country for it.
But Central Bank Governor Ajith Nivard Cabraal said he did not anticipate a major negative impact. “We don’t need to take any measures right now,” he asserted. “We are watching the situation very closely. We are conducting a review every two weeks or so and if anything is needed we will be ready to step up policy
action.”A combination of actors expressed fears about the euro-zone crisis and its repercussions for Sri Lanka. Fitch Ratings said that, among emerging economies, Sri Lanka’s sovereign rating was at most risk from the fallout.
“Sri Lanka is most at risk due to its high external-funding needs and weak balance sheet,” Bloomberg newswire quoted Andrew Colquhoun, head of Asia-Pacific sovereign ratings at Fitch, as saying. “The same issues also make India and Indonesia vulnerable compared to similarly graded peers.”
Be ready for it
Full Story>>>
