Alerts

Populist Agenda in Sri Lanka and Economic Impact

Measures by the newly anointed government headed by President Gotabaya Rajapaksa with elder brother Prime Minister Mahinda Rajapaksa also a two time President to provide tax relief have led to concerns by ratings agencies.

Fitch Ratings has revised the Outlook on Sri Lanka's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Negative from Stable and has affirmed the IDR at 'B'.

While the new government has possibly revised the tax rates keeping parliamentary elections in April in view, where it hopes to exploit the current mood of the people to advantage, the impact on the economy is reflected in the downgrade by Fitch ratings.

"We believe the departure from the previous revenue-based fiscal consolidation path has created policy uncertainty and increased external financing risk for the sovereign, particularly given the large external debt repayments due in 2020 and beyond," the rating agency said in a statement. ...............

Please or to Read More Entire Article

Related Tags

Article by Same Author

In case you come across any suspicious activity, any suspicious movement or have any information to tell to the Anti-Terror Squad, please take a note of the new ALL INDIA TOLL-FREE Terror Help-line '1090'. Your city's Police or Anti-Terror squad will take action as quickly as possible. Remember that this single number 1090 is valid all over india. This is a toll free number and can be dialled from mobile phones also. Moreover, the identity of the caller will be kept a secret.

Please try to make aware each and every citizen of india about this facility.

Helpline 1090