Sri Lanka’s Central Bank has come out to reject a report by Nomura, which placed most at risk of an exchange rate crisis earlier this month.
Instead Sri Lanka’s central bank has claimed the ‘Damocles score’ published by Nomura is a “rudimentary attempt” and that the “report has not undergone a thorough review before publication”.
“Nomura has computed Sri Lanka’s score at 175, while assigning lower values to countries that are currently facing severe economic and financial strains,” it added. “Any methodology that yields outcomes whereby Sri Lanka’s score is substantially worse than countries like Argentina, Turkey, and South Africa does not appear to be sufficiently nuanced to capture market realities and dynamics.”
The statement from the central bank comes as the Sri Lankan rupee continues to fall, hitting record lows this week.
The central bank went on to state “investors and the general public are advised to form their own informed opinion with regard to Sri Lanka’s macroeconomic conditions and potential”.
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