ECONOMYNEXT – Sri Lanka’s third Coronavirus wave will hit the economy less than the earlier two due to selective lockdowns, a vaccination drive and the firms and workers getting used to working from home, Central Bank Governor W D Lakshman said.
However state tax revenues and expenses will be disrupted, he said.
Global demand will also be less than expected, which may hurt demand for Sri Lanka’s exports, he said.
Director of Economic Research Chandranath Amerasinghe said foreign remittances are expected to be higher than last year, though projections will be watched revised he said.
Tourism was also affected.
“We are still hopeful there will be an increase in tourism arrivals once the situation settles,” Amerasinghe said.
“We are looking at a more bleak picture than before the onset of the wave.”
Sri Lanka is looking at various options to bolster the external sector Governor Lakshman said.
Already a swap had been signed with the People’s Bank of China.
Sri Lanka is continuing discussions with neighboring central bank and Middle Eastern counterparts, he said.
China Development Bank had given a 500 million dollar loan.
The enactment of the Colombo Port City Commission bill will also drive investments, he said. (Colombo/Mar20/2021)