World Bank warns political uncertainty could harm Sri Lanka

The World Bank has warned of a negative impact on Sri Lanka from the rise in political uncertainty.

In addition, the bank also said that recent security-related incidents could dampen investor sentiment and perceptions.

The World Bank said a rise in political uncertainty in the months leading up to presidential and parliamentary elections, which will take place in 2019 and 2020, respectively, could weigh on business confidence.

The World Bank said this in its June 2019 Global Economic Prospects: Heightened Tensions, Subdued Investment report.

The report says the global economy has slowed to its lowest pace in three years. It is on track to stabilize, but its momentum is fragile and subject to substantial risks.

International trade and investment have been weaker than expected at the start of the year, and economic activity in major advanced economies, particularly the Euro Area, and some large emerging market and developing economies has been softer than previously anticipated.

Growth in the emerging and developing world is expected to pick up next year as the turbulence and uncertainty that afflicted a number of countries late last year and this year recedes. (Colombo Gazette)

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