Sri Lanka needs to have a clear medium term plan to get revenue backup to about 15% of the GDP,” he said. Further, Dr. Coomaraswamy said that when looking at the country’s BOP, the main source of instability has been the trade account. We need to ask ourselves whether the Fiscal Management Responsibility Act needs to be strengthened and whether the central bank needs to be given greater autonomy, so that it is not subject to fiscal forbearance, which has been the case for many years,” Dr. Coomaraswamy added. So our fiscal stimulus was probably less than one percent of GDP. But he said In the absence of such fiscal stimulus, the CBSL really rolled up its sleeves and performed admiral national service for Sri Lanka.

Source: The Nation October 02, 2021 18:45 UTC