Sri Lanka will soon be more attractive to remain, not leave or emigrate says IMF’s Peter Breuer
Ada Derana: International Monetary Fund’s (IMF) Senior Mission Chief for Sri Lanka Peter Breuer commended Sri Lanka’s economic recovery in the recent years, and stated that as economic opportunities return to Sri Lanka, income will be increased and poverty will be reduced making it more attractive for the people to remain in Sri Lanka, not leave or emigrate.
Speaking during the Press Conference on the IMF Executive Board’s completion of the third review of Sri Lanka’s Extended Fund Facility (EFF) programme, the IMF Senior Mission Chief stated that Sri Lanka’s reserves have increased significantly so far under the EFF programme.
“They have reached about half of the program objectives already which is very impressive”, Breuer expressed.
Commenting further, he said: “I think it’s quite clear that things really have turned around significantly in Sri Lanka. When I first got to Sri Lanka in June 2022 everybody was on a line somewhere to get fuel, to get cooking gas, to get food or medication. Economic activity was very subdued. I think in real terms Sri Lanka lost around 10% of its economic activity as a result of this crisis.”
“Since then, in the short amount of time that the program has been there, basically since 2023, it has already recovered 40% of the income it has lost in the preceding 5 years. In a short amount of time Sri Lanka has already had a very significant recovery – the most recent growth number was 5.5%. So, I think things are turning around significantly in Sri Lanka and that will have an impact on the indicators that we care about such as poverty.”
“As economic opportunities return to Sri Lanka, income will be increased and poverty will be reduced. Also, it will be more attractive to remain in Sri Lanka not leave or emigrate. Those who have emigrated will find opportunities back in Sri Lanka”, Breuer signed off.
OSL take:
The statement by the IMF’s mission chief for Sri Lanka is a clear indication of the strength, growth and resilience of Sri Lanka’s overall economy as well as the ongoing economic expansion. After facing an unprecedented economic crisis in 2022, Sri Lanka has managed to get the country back on a growth path within a short span in comparison to many other countries that had faced similar crises. The ongoing economic activities and the overall expansion recorded by key economic sectors have given a boost to Sri Lanka’s target of becoming a hub in the South Asian region. On the other hand, the country has also recorded an expansion in business/investment opportunities in Sri Lanka’s key economic sectors. Given Sri Lanka’s strategic positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country with many foreign countries, the opportunities presented by Sri Lanka are lucrative business ventures for foreign businesses/investors on the lookout for opportunities in the South Asian region. Sri Lanka also presents the best venue for foreign businesses/investors interested in doing business in the South Asian region to set up bases to engage with other countries using the business conducive environment in Sri Lanka and the preferential treatment enjoyed by Sri Lanka with other countries. Foreign businesses/investors could also look at forming partnerships or joint ventures with local businesses that could help in further expanding operations.
| Article Code : | VBS/AT/20250306/Z_1 |