Sri Lanka: Selected Issues

Author: International Monetary Fund

Volume/Issue: Volume 2006 Issue 447

Publication date: December 2006

ISBN: 9781451823578

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Exports and Imports , Inflation , Economics- Macroeconomics , Public Finance , ISCR , CR , price , remittance , Rs , , GDP , remittance receipt , remittance flow , system database , price pass-through , nonfuel commodity price , Personal income , Remittances , Energy subsidies , Oil prices , Inflation , South Asia , Asia and Pacific , Global

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Summary

This paper attempts to assess the impact of the oil shock on South Asian economies, including Sri Lanka, as well as policy responses to deal with the shock, and the real income loss for low-income households if fuel subsidies were fully removed. The most important impact has been on the balance of payments followed by the results of poverty and social impact analysis (PSIA) conducted for Sri Lanka. Finally, the paper explores to what extent Sri Lanka’s large receipts of worker remittances serve as a hedge against shocks.