Reuters | , Posted via Singh Rahul Sunilkumar
Sri Lanka has a troublesome street forward irrespective of how a lot investment it receives from multilateral and world monetary companies, a senior economist at Moody’s Analytics informed Reuters on Tuesday.
Moody’s Analytics is impartial of Moody’s Investors Service, the ranking company.
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The International Monetary Fund (IMF) authorized a just about $3 billion bailout for Sri Lanka on Monday and the rustic’s presidency stated this system would permit it to get admission to as much as $7 billion in general investment.
“It (the IMF support) is definitely not like the silver bullet they think,” stated Katrina Ell, senior economist at Moody’s Analytics.
“The exuberance that has been reflected in the financial markets will really fade unless we see some significant improvements from the government as also in Sri Lanka’s growth prospects”.
The economist stated all further investment that the rustic receives in coming months is excellent news however fiscal prudence and debt sustainability shall be key.
“We need to keep in mind that it’s still going to be a difficult road no matter how much potential funds or support is being thrown at Sri Lanka,” Ell stated.