ECONOMYNEXT – Sri Lanka will set up an Export Import Bank, with a 10 billion rupee capital contribution from the tax payer, Finance Minister Ravi Karunanayake said renewing plan that had drawn criticism from economists.
The subsidy to exporters come as the current administration slapped a 15 percent tax on health care of sick people.
The bank will be set up as a pubic private partnership, he said.
Economists have warned that the Exim Bank will be another expensive mis-adventure which will end up with bad loans given to cronies.
They said Sri Lanka investment climate and freedom for export businesses to operate must be expanded instead of entering into a global Mercantilist subsidy race with Exim Bank subsidized credit.