Sovereign Analysis /
Sri Lanka

Sri Lanka: Imbalances to remain despite policy shift

  • BOP and FX crisis has continued to worsen amid money printing, with import and capital controls failing to plug the gap

  • New central bank governor has promised policy shift on import controls and yield caps, and to pay external debt

  • Unlikely to be sufficient without IMF-backed consolidation, but government is still resistant to programme; retain Sell

Sri Lanka: Imbalances to remain despite policy shift
Patrick Curran
Tellimer Research
30 September 2021
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