Import restrictions hit economic growth : Pathfinder Foundation

Import restrictions hit economic growth : Pathfinder Foundation

Import restrictions hit economic growth : Pathfinder Foundation

Written by Staff Writer

03 Feb, 2021 | 9:33 pm

COLOMBO (News1st): The Pathfinder Foundation has said that import and capital restrictions have affected the country’s economic growth, employment, and revenue at present.

Issuing a statement, the Pathfinder Foundation noted that the country’s economy has been affected at a time in which bouncing back from the economic impact of the COVID-19 requires priority.

In its statement, the Foundation noted that the most imminent threat to macro-economic stability, which can affect the whole economy, comes from the country’s Balance of Payments.

The statement added that Sri Lanka’s external debt dynamics are extremely challenging over the next six months, and that urgent action is needed to address them.

It also cautioned that there is a strong possibility that the country’s reserves are likely to fall to extremely dangerous levels within the next six months.

Among its proposals, the Pathfinder Foundation called on the government to develop a long-term solution for achieving sustainable debt dynamics and involves running a primary surplus in the budget.

The Foundation also insisted that increasing investment, including FDI, and boosting the production of export products, need to be an integral part of this process.

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