The Sri Lankan state’s debt dependent and public sector heavy economic strategy is crowding out private investment, lowering domestic savings and foreclosing a sustainable economy in the long term, business and economic analysts warned this week.
The Central Bank’s growth projection were this week revised downwards by ratings agencies RAM Ratings and Standard & Poor’s who also warned that Sri Lanka’s long term growth depended crucially on cutting government spending.
Meanwhile, fear is silencing critics of the government’s economic policies, one business leader protested this week.