Brexit would not create any significant adverse impact on the economy of Sri Lanka, according to Indrajit Coomaraswamy, the newly-appointed Governor of the Central Bank of Sri Lanka (CBSL). Making a review of the approach adopted by Sri Lanka in the last 40 years, he said there had been “repeating cycles of stop go” policy. “We have not been able to create an environment which has increased investment.” In a country such as Sri Lanka which did not have a “large domestic market and large amounts of strategic materials,” domestic investment should have taken off first. “We would start implementing [economic] stabilisation programmes but never we see [them] through.”He explained that the “most disappointing part of the post-conflict [civil war] narrative” was the performance of investors, both domestic and foreign. The CBSL had tightened monetary policy and allowed exchange rate to float a “little bit.

Source: The Hindu July 05, 2016 23:03 UTC