ECONOMYNEXT – Sri Lanka needs to maintain prudent macroeconomic policies to tackle the economic fallout from a possible widening of the Red Sea conflict, a central bank official has said.
The ‘Widening Red Sea Conflict: Implications for the global economy and Sri Lanka’ was discussed at a forum organized by the Institute of National Security Studies (INSS), a think tank.
The discussion, held at the Ministry of Defence, explored how increased maritime risks, potential diversions in trade routes and economic instabilities can affect Sri Lanka as an island nation, according to a government statement.
Director of the Economic Research Department at the central bank, Sujeetha Jegajeevan, pointed out that “maintaining prudent macroeconomic policies was important to tackle the economic fallout on Sri Lanka from a possible widening of the Red Sea conflict”.
The discussion focused on the evolving geopolitical landscape of the Red Sea, implications of the conflict on the global economy, impacts on the Sri Lankan economy and strategies to strengthen economic resilience whilst exploiting the opportunities as a key maritime hub in the Indian Ocean.
Speakers included Standard Chartered Bank in Sri Lanka CEO Bingumal Thewarathanthri, and LIRNE Asia founding Chair Professor Rohan Samarajiva, moderated by Dr Ganeshan Wignaraja, Professorial fellow in Economics and Trade at Gateway House in Mumbai and Visiting Senior Fellow at ODI in London.
Wignaraja summerized the main points expressed by the speakers and suggested that the “government needs to maintain a razor sharp focus on ensuring economic security for the country to move from debt default status to economic prosperity”. (Colombo/Sep4/2024)