Sri Lanka's economic crisis could have a worse impact : report

COLOMBO (News1st) : The impact of the brewing economic crisis in Sri Lanka could be worse than the period during the nearly three-decade long civil war in the country, a report has showed. Sri Lanka should focus on protecting human life, and restore economic stability in the short run, while laying the foundation for an economic growth in the medium term, Pathfinder Foundation, which published the report said. A committee, comprising other academic or research institutions,  led by former central bank governor Dr. Indrajit Coomaraswamy had compiled the report.

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It had been submitted to President Gotabaya Rajapaksa on Saturday. According to the report, Sri Lanka's second priority should be " ... building fiscal and external reserve buffers to increase resilience by de-risking the economy going forward." The report added that the country's third priority is to improve the investment climate so that the private sector can restructure businesses. Among short-term solutions to the key issues in the country, as listed out in the report, were to identify priority sectors which require earliest possible release from restrictions on movement. It suggests the slow implementation of funded infrastructure projects, and the creation of more conducive conditions to meet business cash flow requirements.

Download the report here