Sri Lanka repairing damage from ‘coup’, maintaining market confidence: FinMin
ECONOMYNEXT – Sri Lanka has rebuilt confidence among investors over the past two months with sovereign bond yields falling over 200 basis points, and talks are under way with the International Monetary Fund (IMF) to resume its program, Finance Minister Mangala Samaraweera said.
"It has taken a great deal of hard work to bring us back to stability after the cataclysmic disruptions to the economy during that period," Minister Samaraweera told the American Chamber of Commerce in Colombo.
"Without any disruptions, Sri Lanka would have been able to enjoy a robust boost to the economy and we would have seen a strong uplift in economic performance in 2019.
"Unfortunately, Sri Lanka was deprived of the opportunity to benefit from these emerging tailwinds as we got engulfed in a political crisis.
"We have since repaired the damage to our external sector and markets have regained confidence in the last 2 months. Today, our external borrowing costs have declined by over 200 basis points."
Sri Lanka is planning to raise about 3 billion US dollars with 5.9 billion US dollars of dollar borrowings falling due, it was a priority to ensure access to global markets at an affordable rate, he said.
"A key element of this would be the continuation of the IMF programme which will signal to markets our continued commitment to disciplined, rules-based economic management," he said.
"The IMF staff mission is in Colombo this week continuing negotiations with officials of the Treasury and Central Bank.
"Our objective is to ensure responsible fiscal policies whilst enabling space to invest in targeted growth supportive measures. "