By-pass operation

Sri Lanka is planning to tap international capital markets aggressively
after getting a sovereign rating to support its economic recovery next
year, and bypass pesky donors who demand fiscal discipline and low
inflation to give cheap long-term dollars. Sri Lanka is planning to tap international capital markets aggressively
after getting a sovereign rating to support its economic recovery next
year, and bypass pesky donors who demand fiscal discipline and low
inflation to give cheap long-term dollars. Treasury Secretary P B Jayasundera says Sri Lanka should now be
able
to manage its own affairs, without depending on donors, as it is a
middle-income country.

“Country has to now learn to manage risk,” says Jayasundera. “There is
no
point Sri Lanka still going behind the donors, the way we went behind
when
we had US $ 400 per capita income. Middle income countries must learn
how
to manage risk and how to sustain their fiscal management. That is why
the government has taken a bold decision that we must go beyond the
traditional donors to test our balance sheet.”

Jayasundera was addressing members of the Sri Lankan Economists
Association. He says the private sector firms should use the rating to
bring in dollars to the country.
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