Sri Lanka economy will be stable with cost-based energy prices: IMF

Audrey Azoulay

Feb 14, 2013 (LBO) - Sri Lanka's economy will be stable and more domestic resources will be available for high value spending if energy prices are adjusted to match import costs, the International Monetary Fund had said.
online pharmacy buy ciprodex with best prices today in the USA

online pharmacy buy abilify with best prices today in the USA

buy nolvadex online no prescription pharmacy

"Step number one could be to adjust prices closer to cost-recovery, if not have cost recovery," IMF mission chief to Sri Lanka John Nelmes said.
buy doxycycline online no prescription pharmacy

"And then the second step would be a price adjustment mechanism.

One might envisage that this would take place over the course of the year.


State Interventions

Arbitrary state interventions, in petroleum and power pricing have repeatedly pushed Sri Lanka in balance of payments crises and currency depreciation.

The most recent incident was in 2011 when a global rise in oil prices which was worsened by a domestic drought which slashed hydro-power increased oil imports.

online pharmacy buy strattera with best prices today in the USA

online pharmacy buy diflucan with best prices today in the USA

The imports were funded with bank credit, but state intervention in interest rates prevented interest rates from going up to curb overall credit (private credit) and also curb aggregate consumption and raise more deposits.

Instead large volumes of money was printed and injected (central bank credit) to the banking system to keep interest rates down, mostly

Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x