Govt. braces for more external challenges

Friday, 26 October 2018 00:01 - - {{hitsCtrl.values.hits}}

The Government anticipates more economic turbulence in the days to come with the Trump administration further tightening economic sanctions on Iran.

Finance State Minister Eran Wickramaratne, moving the motion on the second reading debate of the Finance Bill yesterday in Parliament, cautioned the nation of possible hard times while revealing that Government attempts were now underway in terms of initial discussions with friendly nations to provide Sri Lanka with essential supplies including petrol and diesel in case of an emergency.“The US imposed sanctions against Iran on 28 August and it is to impose new sanctions on 5 November. This impacts Sri Lanka as we depend on Iranian crude oil. We also export tea to Iran and earn considerable income. The US sanctions remain a challenge for Sri Lanka,” said the State Minister.

According to him, Sri Lanka may have to to negotiate a GSP plus trade concession with the UK as it is no longer an EU member following Brexit. He added that the US-China trade war and the African Growth and Opportunity Act (AGOA) of the US also impacts the Sri Lankan economy.

“The Sri Lankan rupee depreciated by 11.9% from January to 21 October mainly due to external reasons,” he explained, adding that the Indian rupee depreciated by 15% and the Pakistan rupee depreciated by 21% during the same period. (AH)