INSUBCONTINENT EXCLUSIVE:
The International Monetary Fund (IMF) says Sri Lanka must focus on diversifying its export markets and producing an investment-friendly
environment to preserve stability and growth, even as current tariff changes present obstacles to economic forecasting.Speaking at the 2025
Spring Meetings of the World Bank Group and the IMF Thursday (24 ), Krishna Srinivasan, Director of the Asia and Pacific Department,
highlighted the intricacy added by current developments in Sri Lanka.You understand, speaking about unpredictability, which the MD mentioned
this morning, as you just spoke about, the team remained in Sri Lanka not too long earlier, and they were in the midst of having
conversations with the authorities when these tariffs were revealed, Srinivasan stated during the Regional Economic Outlook Asia and Pacific
session, he added.So, for the team, it became rather tough to put together a macro structure, which takes into consideration the tariffs and
the implications they have on development, on exports, and so on etc
That was an example of how unpredictability can affect simply operations with nations
The group is back here, and weve continued conversations with the authorities.He noted that tariffs have an especially considerable effect
on Sri Lankas key industries
The wider concern is that this is a nation which is affected by big tariffs
Theres a garment sector, there are a lot of the impact on the garment sector might be rather considerable
And there are other sectors also here
The question, of course, is for countries like not just Sri Lanka, however all nations, they need to believe in terms of diversification of
our export markets, greater combination within the region, all these things can help diversify, can actually assist you mitigate the risks
which come with tariffs from one country.On financial investment, Srinivasan stressed the significance of supporting domestic activity
without jeopardizing fiscal discipline
Exceeding that, I believe when it comes to Sri Lanka, financial investment can still be propped up
Again, we would state when we state investment, create the environment for domestic financial investment to get, not always through tax
exemption rewards, keep your fiscal combination, keep your financial integrity undamaged, but promote financial investment by supplying an
environment where private investment can flourish.He likewise acknowledged the progress made under the current IMF programme
The program has led to a substantial amount of macro stability, which has actually resulted in growth picking up, inflation coming down
So the time is ripe for Sri Lanka to start more comprehensive structural reforms, which will promote private investment and get development
going on a more long lasting basis.
