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The Prime Minister of Sri Lanka, Ranil Wickremesinghe, said in a recent statement that the impact of these attacks on the economy is likely to be at least US$1bn, an estimate that he said could possibly be significantly increased. Tourist and city hotels in Sri Lanka are emptying out, as visitors leave the island amongst a host of travel advisories. Today, the United States issued a statement saying: "On April 26, 2019, the Department of State ordered the departure of all school-age family members of U.S. government employees in Kindergarten through 12th grade. The Department also authorized the voluntary departure of non-emergency U.S. government employees and family members." With regard to the economy, fortunately for Sri Lanka, the Governor of the Central Bank has been running a very tight and conservative monetary policy. That policy that has come under criticism from political leaders for being the cause of slow growth.
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It is due to this policy that Sri Lanka's foreign reserve position remains strong at over USbn, with over USbn in debt refinancings done after the recent political crisis ended early this year.
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Statistics also show that there has been no exodus of capital from the bond and stock markets in reaction to the attacks, perhaps evidence of foreign investor confidence in the country's fiscal and monetary postion.
WATCH: Sri Lanka's central bank: Too early to know impact of attacks @CBSL #EasterSundayAttacksSL #EasterSundayAttacksLK $LKR https://t.co/1uSZd4o3BG
— Sri Jegarajah (@cnbcSri) April 26, 2019