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Finance Minister wants lower interest rates, IMF show of support

Nov 02, 2015 (LBO) - Sri Lanka's Finance Minister has called for lower interest rates in the island and for the IMF to support the island's development programme.
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Ravi Karunanayake said an IMF growth forecast of 5-5.
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5 percent for this year was too low, a media report from London said. He wants the Central Bank to make a big cut in interest rates to as low as 4-5 percent, while the rupee is expected to stabilise and find its own equilibrium, he added.
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Foreign reserves could rise to 10 billion dollars from 6.8 billion in September, partly through the 1.
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5 billion dollars raised through a sovereign bond last month.
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Karunanayake had said that the government intends to reduce corporate taxes by "a meaningful proportion" in the upcoming budget this month.
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tux
tux
9 years ago

I think Mr. Wijewardena has given a proper response to this blatant display of myopia. Foreign investors are not fools, they would prefer good economics with bad numbers to bad economics with good numbers. Reminds of the idiom about fools rushing in where the angels fear to tread.

Tilak
Tilak
9 years ago

The only working engine for SL @ this moment is growth.FM is doing his part to support this.China (world’s second largest economy)for this year up to now has reduced rates six times in order to prevent economic slowdown whilst US(world’s largest economy) is holding on to near zeero rates (for a decade) to spur economy@ least up to December.IMF support may be necessary for SL.

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