The Central Bank of Sri Lanka called for “political stability” on the island, as growth of the economy slowed to the lowest level in 16 years.
"Political stability is essential for sustained growth and development," the bank said in a statement on Wednesday.
The Sri Lankan government has been in increasing turmoil since this year’s local elections, which saw former president Mahinda Rajapaksa’s party making sweeping gains across the south, as the ruling parties suffered heavy losses. Tensions have increased between the Sri Lankan President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe, with the latter battling of a no confidence vote last month.
Meanwhile the economy has stumbled, with the central bank reporting last week that growth last year had slowed to 3.1 percent, the slowest since 2001.
Last month the government had managed to raise $2.5 billion through a sovereign bond issue – the largest single bond sale the government has undertaken –a move the central bank said it must build on.
"It is imperative to build on the international goodwill and support from international financiers who have invested upon this by persisting with sound macroeconomic policies...," the bank said.
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