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2. What is the impact on the Sri Lankan Economy?
* Fortunately, Sri Lanka has only a minor relationship with the financial institutions that have got into difficulties. Because of this reason, there will not be a significant direct impact on our economy.
* In addition, the shift of economic policy of the present government, which has given pride of place to the domestic economy, has also prevented any kind of large scale impact, arising from the international turmoil. For example, Sri Lanka’s “Api Wavamu – Rata Nagamu” policy has helped the country to withstand against the world food crisis. This has been achieved in the midst on many countries, including Egypt, Haiti, Ivory Coast and Somalia, are having “Food Riots”.
3. It is clear that we have been able to face the recent shocks successfully.
* Sri Lanka was able to confront the oil price shock with appropriate, prudent and timely measures. The decision to pass-through the oil prices to final consumers was one of the toughest but very prudent decisions taken by the government in the economic management front.
* Sri Lanka was also able to obtain a generous credit facility from Iran to lower the possible impact of a credit crunch that could have been otherwise caused due to the very high international oil prices of recent times. It is heartening that oil prices are reducing now, and we are naturally more comfortable in that scenario.
* As already stated, the food price shock was successfully dealt with, without a single food shortage incident or any other panic.
