Sri Lanka heading toward external forex crisis: Economist
ECONOMYNEXT – Sri Lanka is heading towards and foreign exchange crisis and slowing growth, with external payments mounting, top economist has warned.
"We are heading towards an external foreign exchange crisis, economic growth is decelerating," W A Wijewardene, to economist and former Deputy Governor Sri Lanka’s central told an economic forum.
Wijewardene said external payments for the next 12 months were 4.5 billion US dollars and the import bill was also rising.
He was speaking at an economic forum in Colombo.
Meanwhile economic growth was also slowing. Sri Lanka’s economic statistics are also disputed.
Analysts have warned the central bank that domestic credit and imports are being driven to unsustainable levels by money printed to maintain low interest rates amid a rising budget deficit. (Colombo/January07/2015)