Sri Lanka's economic troubles mostly home brewed: economists

Article Date: 
22 Mar 2009

"This is a home brewed macro economic crisis," Razeen Sally from the London School of Economics, said in Colombo.

"It is not a result of global forces for the most part..."

Sri Lanka has gone to the IMF several times either for bailouts or for comprehensive reforms to put the island on a higher growth path, some of which were abandoned in mid-program.

"There is always a ritual dance at work with these aid conditionality packages. The lending organizations are in the business of shoving money out of the door," observes Sally.

"That is their raison d'etre. And they often dress it up with conditions of future reforms which governments don't usually deliver on.

Article Source: 
Lanka Business Online