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 Impact on Sri Lankan economy

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farhath Sulaiman



Posts : 1
Join date : 2016-12-30

PostSubject: Impact on Sri Lankan economy   Sat Mar 25, 2017 11:57 pm

1. US Federal rate hike; possible limitation on foreign investments towards Sri Lanka as investors find investment in US much lucrative than investment in developing countries. This could be assessed in both favorable and worse extremes.
Inflow of FDI in future
https://www.bloomberg.com/news/articles/2017-03-17/more-hedge-funds-shut-last-year-than-any-time-since-2008-crisis

Worst case scenario would be; limits on FDI due to currency depreciation and plausible inability provide with a decent return on investments.
http://blogs.wsj.com/economics/2017/03/17/while-markets-see-growth-fed-officials-rightly-wait-and-see/
https://www.wsj.com/articles/wsj-survey-of-economists-sees-growth-climbing-in-2017-and-2018-then-dissipating-1489672873

2. US focus on full employment; possible impact on local apparel business as US plans to create employments related apparel industry with-in country.

3. US-China trade agreements;
Trumps vision on “America First” would pressure China and EU as to compromise their own demands over the best interest of USA.

https://www.bloomberg.com/politics/articles/2017-03-19/-america-first-trump-play-opens-door-for-eu-china-trade-detente

4. US expectation on faster growth which may not be sustainable for developing economies
https://www.nytimes.com/2017/03/12/business/trump-fed-interest-rate.html?ref=economy

5. Sri Lanka implements two pronged strategy for economic prosperity and innovation (Sunday Times) which was subject to the implementation after November 2016 (subject US presidential election). This seems quite a hard hurdle for Sri Lankan policy makers given current US trade policy aggravation.

6. Uncertain and unpredictable economic policies

Implication of cancellation of TPP
Tax reformations

http://www.sundaytimes.lk/160529/business-times/sri-lanka-implements-2-pronged-strategy-for-economic-prosperity-and-innovation-195010.html

http://www.sundaytimes.lk/170129/columns/president-trumps-uncertain-and-unpredictable-economic-policies-226619.html

https://www.wsws.org/en/articles/2017/02/11/trsl-f11.html

https://www.forbes.com/sites/xiangwang/2017/01/20/the-trump-effect-asian-companies-look-to-the-u-s-for-growth-opportunities/#663abfa05fa6
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