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IMF representative criticises Sri Lanka red tape and institutional delays

Sri Lanka’s multiple ministries, agencies and regulations make implementing policy difficult and the country’s red tape hinders trade and investment, the resident representative of the International Monetary Fund said.

According to EconomyNext, resident representative Eteri Kvintradze said, "Sri Lanka compared to other emerging markets has more restrictive FDI and trade regulatory environment.”

"Sri Lanka's export structure is frozen it's because it is highly protected and regulated and there is no space for innovation. To be competitive and innovative Sri Lanka needs a less restrictive regulatory environment.”

The representative criticised Sri Lanka’s approach of creating new institutions to address issues, saying, “whenever there is a problem [Sri Lanka’s] solution is another commission, or an institution or another agency.”

"There are so many institutions and so many strategies it's very hard to do anything. There should be less regulation and fewer institutions," she said.