Tuesday, 22nd June 2021

IMF : Lankan economy remains vulnerable

Colombo, May 22 (BAN/ AD): IMF has said in its latest report that Lankan economy remains vulnerable to shocks, given high public debt, large refinancing needs, and low external buffers. As per report public debt is estimated to cross 90% of GDP at the end-2018. Country’s debt to GDP ratio remains higher than the emerging economies.

Based on the latest available data, as of end-2017, the financial obligations of non-financial state-owned enterprises are estimated to be 11.8% of GDP. Report states more than 200 state-owned enterprises, while the Ministry of Finance only publishes the financial performance of 42 non-financial SOEs.

Three major SOEs—the Ceylon Petroleum Corporation (CPC), the Ceylon Electricity Board (CEB), and SriLankan Airlines (SLA)—recorded a combined loss of 1.3% of GDP in 2018.

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