Natural disasters affect Sri Lankan economyStaff Writer | October 10, 2017
Sri Lanka's economy is weakening due to frequent natural disasters, with a predicted increase in poverty, according to the World Bank's half-yearly report Focus on Southern Asia.
Asia Focus on Southern Asia
The benefit from low oil prices resulted in more imports of that product and food, due to the drought and the impact of agricultural exports, with an increase of the cost of tea, said the report.
The Sri Lankan government goes slow on a reform program aimed at improving competitiveness, public finances and governance.
The implementation of those changes, together with the program by the International Monetary Fund, will increase confidence and reform the tax system to achieve better tax consolidation.
Focus on Southern Asia added that Sri Lanka will have to adopt political measures to align expenditures and priorities, and mitigate the impact of the reforms on the vulnerable population to face economic challenges. ■