…for Sri Lanka, the only country in the region to default on its official debt amid the economic squeeze caused by the pandemic and the Ukraine war, these are sunny days.
Tourism revenue and remittances from Sri Lankan workers overseas have come roaring back. Inflation, which reached 70% last September, was back down to 6.3% in July. As a result, the Central Bank of Sri Lanka has cut its benchmark interest rate by 4.5 percentage points since June…
To win the IMF’s support, Colombo took hard but much-needed steps to increase fuel and electricity prices as well as raise tax rates and extend the tax net. A new central bank governor raised benchmark interest rates by 8 percentage points over the course of 2022 to try to put a lid on inflation and bring a degree of macroeconomic stability…
The IMF, which approved support for Colombo in March, estimates Sri Lanka’s current-account deficit will be around 1.5% of gross domestic product from this year onward. This would be a manageable and normal level for any developing country that is a net importer of fuel and food.
Here is the full Nikkei story, via AM Livingston.
The post Progress in Sri Lanka appeared first on Marginal REVOLUTION.
This post first appeared on Mongo | The Hottest Trends , News And Technology In The World - Exclusive., please read the originial post: here
