I nearly fell off the chair laughing on this one; the IMF warns Sri Lanka that its economic growth may slow due to short term financing....
"...COLOMBO, Nov 2 (Reuters) - The International Monetary Fund (IMF) has warned that Sri Lanka's "impressive economic growth" was at risk unless it shored up its balance sheet and trimmed reliance on short-term foreign debt amid the global credit crunch.
The IMF said it expects economic growth to slow to 6.1 percent in 2008, below the central bank's estimated 7 percent and the 6.8 percent recorded last year. It predicted growth of 5.8 percent in 2009.
"(IMF) directors expressed concern that the combined build-up of macroeconomic imbalances, balance sheet vulnerabilities, high inflation, and external financing poses serious risks to economic stability," the IMF said in its annual assessment of Sri Lanka.
It said the global financial crisis, which has drastically cut the availability of credit, had made "Sri Lanka's external accounts ...vulnerable to a reduction in international investor risk appetite." The related article can be found here;
"...COLOMBO, Nov 2 (Reuters) - The International Monetary Fund (IMF) has warned that Sri Lanka's "impressive economic growth" was at risk unless it shored up its balance sheet and trimmed reliance on short-term foreign debt amid the global credit crunch.
The IMF said it expects economic growth to slow to 6.1 percent in 2008, below the central bank's estimated 7 percent and the 6.8 percent recorded last year. It predicted growth of 5.8 percent in 2009.
"(IMF) directors expressed concern that the combined build-up of macroeconomic imbalances, balance sheet vulnerabilities, high inflation, and external financing poses serious risks to economic stability," the IMF said in its annual assessment of Sri Lanka.
It said the global financial crisis, which has drastically cut the availability of credit, had made "Sri Lanka's external accounts ...vulnerable to a reduction in international investor risk appetite." The related article can be found here;
http://www.guardian.co.uk/business/feedarticle/7974853/print
Sri Lanka has let loose on a counter-terrorism campaign of unprecedented proportions to bring parts of the country that had fallen into anarchy in the North and the East. The expenses caused in this process are siginificant enough to have long term effects. Every country that has had to take on challenges of such magnitude have suffered economic consequences and have suffered for decades as a result.
In Sri Lanka's case it is to be a drop of 0.9% from the forecasted 7% GDP growth. This is in an year the entire world is experiencing massive economic travails and recession. Sri Lanka is yet expected to have an annual economic growth of at least 5%, even in the midst of the military action costing her billions.
Does the IMF expect us to run in fear of our own shadow? Give me a break, puhlease...!
Sri Lanka has let loose on a counter-terrorism campaign of unprecedented proportions to bring parts of the country that had fallen into anarchy in the North and the East. The expenses caused in this process are siginificant enough to have long term effects. Every country that has had to take on challenges of such magnitude have suffered economic consequences and have suffered for decades as a result.
In Sri Lanka's case it is to be a drop of 0.9% from the forecasted 7% GDP growth. This is in an year the entire world is experiencing massive economic travails and recession. Sri Lanka is yet expected to have an annual economic growth of at least 5%, even in the midst of the military action costing her billions.
Does the IMF expect us to run in fear of our own shadow? Give me a break, puhlease...!
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