The Sri Lanka Economic Association (SLEA) pointed out that due to Brexit, the possible rise in borrowing cost for the country due to the pressure on interest rates, the adverse impact of a likely fall in the high spending tourist segment and a rise in the cost of the foreign direct investment flows, could result.

Conducting a seminar on Britain’s exit from the European Union (EU) and its impact on the Sri Lankan economy organized by the SLEA and the Organization of Professional Associations of Sri Lanka (OPA), Professor in Economics at the Department of Economics of the Faculty of Arts of the University of Colombo, Prof. Sirimal Abeyratne in discussing Brexit also brought out immediate policy concerns for the country and the medium term economic implications.

Prof. Abeyratne also implied that the expensive exports to the EU and Great Britain from Sri Lanka were due to the depreciation of the Sterling Pound and the EU’s call for aligning Sri Lanka’s exchange rate with the two currencies.

While emphasizing how the geo-politics had been overruled by the EU Agreement, he mentioned that it was an opportunity to re-arrange the long-term global economic affairs and sporadic events as pieces of a long-term process as Brexit was neither the beginning nor the end of global economic and political affairs.