Colombo, July 17 (Agency) International Monetary Fund Managing Director Kristalina Georgieva has cautioned the countries with high debt levels and limited policy space saying Sri Lanka is a warning sign.Daily Mirror quoted Georgieva as saying on Saturday that Sri Lanka is a warning sign to countries with high debt levels and limited policy space.Following remarks by the MD were made at the hybrid meeting of the G20 Finance Ministers and Central Bank Governors held in Indonesia.
The war in Ukraine has intensified pressure on commodity and food prices. Moreover, continuing pandemic-related disruptions and renewed bottlenecks in global supply chains are weighing on economic activity, Daily Mirror quoted her as saying.”As a result, later this month we will project a further downgrade to global growth for both 2022 and 2023 in our World Economic Outlook Update. Moreover, downside risks will remain and could deepen — especially if inflation is more persistent — requiring even stronger policy interventions which could potentially impact growth and exacerbate spillovers particularly to emerging and developing countries.”Countries with high debt levels and limited policy space will face additional strains. Look no further than Sri Lanka as a warning sign,” she added.