Sri Lanka needs prompt coherent action to survive global slump: think tank

Sri Lanka's state minister of defence Ruwan Wijewardene (L) takes part in a press conference in Colombo on April 24, 2019. - A Sri Lankan security dragnet hunting those responsible for horrifying bombings that claimed more than 350 lives has scooped up a further 18 suspects, police said April 24, as pressure mounted on politicians to explain why no one acted on intelligence warnings. (Photo by ISHARA S. KODIKARA / AFP) (Photo credit should read ISHARA S. KODIKARA/AFP/Getty Images)

Feb 16, 2009 (LBO) – Sri Lanka needs “prompt and coherent” policy action to counter a global slump which was slowing demand for exports and making it difficult for the government and private firms to borrow abroad, a top think tank has said. “It is essential that prompt and coherent policy action is taken in order to address the challenges that will be faced in the coming months,” the Institute of Policy Studies (IPS), a semi-government think tank, said.

“With world growth projected to fall to its lowest in 60 years, it is feared that almost all countries will suffer serious economic downturns; Sri Lanka will certainly face tough times through 2009.”

The IPS is organizing a seminar on Wednesday February 18, on ‘The Global Economic Crisis and Sri Lanka’.

The seminar will assess the global financial and economic crises, its impact on the region and on Sri Lanka, with resource persons drawn from the public and private sector.

Unlike countries such as India and China which enjoy large domestic markets, IPS says ‘decoupling’ was never on the cards for Sri Lanka.

“Being a trade dependent country with a highly concentrated export market (the US and EU account for 62 percent of total exports) and a concentrated export bask