Sri Lanka among countries with rising interest burdens, says IMF
April 12, 2019 03:56 pm
Sri Lanka is among the countries with rising interest burdens and vulnerable to rollover risks, the International Monetary Fund (IMF) says.
“Many economies saw rising interest burdens, which exceeded 20 percent of total revenue in 2018 in Egypt, Pakistan, and Sri Lanka,” according to the IMF’s Fiscal Monitor Report 2019.
It further mentioned, “As a result, emerging market economies have become vulnerable to rollover risks if they face large financing needs.”
The IMF says Sri Lanka’s maturing debt in 2019 is 13.5 percent of the gross domestic products which would fall to 12 percent in 2020, while the total financing need would fall from 18.1 percent to 15.5 percent.
In emerging market and developing economies, sustained efforts to mobilize revenues can provide for much-needed investment in human and physical capital, the report says.
The Fiscal Monitor report further said removal of tax exemptions in countries such as Argentina, China, Sri Lanka, and Turkey and improving administrative efficiency would yield more revenue for priority initiatives.