Sri Lanka FDI down 52-pct in 2016 first quarter
Jul 02, 2016 09:18 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka's foreign direct investment in Sri Lanka dropped 52 percent to 164.5 million US dollars in the first quarter of 2016 from 346.5 million dollars a year earlier, official data showed.
The FDI flows included foreign loans.
In 2015, FDI with loans also fell from 29 percent to 1,161 million dollars from 1,635 million dollars.
Sri Lanka has gone through a period of policy instability over the past 15 months with economic policy in particular turning illiberal with ad hoc taxation undermining just rule of law. An experiment with Keynesian stimilus involving and loose fiscal and monetary policy, has generated a balance of payments crisis, leading to an International Monetary Fund backed program to bring back stability.
Rating agencies have downgraded Sri Lanka's credit and expressed concern at the ability of the new administration to implement declared policies. (Colombo/July02/2016)