Sri Lanka’s Central Bank yesterday predicted that the uncertain economic situation caused due to Britain’s exit from the European Union will last for at least two years.
The latest report submitted to Prime Minister Ranil Wickremesinghe said it would take at least two years for Britain to leave the EU and, therefore, the global economic crisis that had already begun would last for two years, Xinhua news agency reported.
As 40% of Sri Lanka’s exports to Europe go to Britain, the South Asian island nation would definitely be affected with the fall of the pound, the report said.
According to the report, Sri Lanka would not get the expected advantages from the Generalised System of Preference (GSP)-plus facility.
Sri Lanka lost the EU GSP-plus during the performance of the former government. The new government, which took office last year, gave a commitment to meet the expectations from the EU and implemented some legal amendments in order to be in line to regain the GSP.
Meanwhile, Wickremesinghe on Sunday announced that Sri Lanka will now have to turn toward South and Southeast Asian nations for trade ties due to the uncertainty triggered by Brexit.
“We have already planned to sign Economic Technology Co-operation with India and a free trade agreement with China but we will start negotiations with Singapore for a free trade agreement shortly and will also think of South Korea as well,” the prime minister said.