SL is warning sign for countries with high debt levels, limited policy: IMF Chief

17 July 2022 10:15 am - 6 - {{hitsCtrl.values.hits}}

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International Monetary Fund Managing Director Kristalina Georgieva said yesterday that Sri Lanka is a warning sign to countries with high debt levels and limited policy space.

Georgieva made these remarks at the hybrid meeting of the G20 Finance Ministers and Central Bank Governors held in Indonesia.

The war in Ukraine has intensified, exerting added pressure on commodity and food prices. Global financial conditions are tightening more, than previously anticipated. And continuing pandemic-related disruptions and renewed bottlenecks in global supply chains are weighing on economic activity, she said.

"As a result, later this month we will project a further downgrade to global growth for both 2022 and 2023 in our World Economic Outlook Update. Moreover, downside risks will remain and could deepen -- especially if inflation is more persistent -- requiring even stronger policy interventions which could potentially impact growth and exacerbate spillovers particularly to emerging and developing countries. Countries with high debt levels and limited policy space will face additional strains. Look no further than Sri Lanka as a warning sign," she said.

Emerging and developing countries have also been experiencing sustained capital outflows for four months in a row. They now suffer the risk of reversing three decades of catching up with advanced economies and instead falling further behind.

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Comments - 6

Punchi Sunday, 17 July 2022 10:39 AM

IMF fails to publically say that we kept bad company, we were encouraged by our loan shark to borrow at exorbitant interest rates with kick backs or commission to fund unproductive endeavours that we could never afford. When things turned sour all the loan shark which already has taken a part of its pound of flesh just keeps saying that it is sorry for our predicament and others should provide accepted interference in our affairs by providing food, medicines, fuel etc

BuffaloaCitizen Sunday, 17 July 2022 10:49 AM

Thank you SLPP Ministers for making Sri Lanka as a study for the whole world on bankruptcy and sheer incompetence.

Andrew Silva Sunday, 17 July 2022 11:56 AM

IMF Managing Director Kristalina Georgieva should be deeply aware of Sri Lanka’s situation before granting financial assistance because the most powerful in the government has a history of mismanagement,through improper practices. Assistance is welcome by the affected nation and we will be thankful to the IMF.

Cabby Sunday, 17 July 2022 12:42 PM

At least we are teaching "Economics" to experts!!!

Ran.jit.com Sunday, 17 July 2022 04:47 PM

A country with massive sea area, have huge aquatic resources not utilised because of the Buddhist policy space. This is exactly what the other-sthans want from this false leadership now. If the majority continue to trap themselves in this illusive space under this undemocratic rule for the next 3 months, it warns them of a land of native slavery.

Adwani Monday, 18 July 2022 11:34 AM

SL is warning sign for countries with high debt levels, In reality, SL is a warning sign for corrupt leaders. Within a year 7 billion US Dollars got vanished.

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SL is warning sign for countries with high debt levels, limited policy: IMF Chief

Comments - 6

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