Sri Lanka economy ranked among most effected emerging economies

The international journal on Economics “The Economist†has ranked Sri Lanka as one of the most affected emerging economies in the world due to the COVID-19 epidemic.

 

The journal recently published its ranking of the economies that have been affected by the COVID-19 epidemic.

 

Accordingly Sri Lanka has been ranked at 61 out of 66 countries that has been considered as emerging markets for the assessment. Neighbouring emerging marker, Pakistan has been ranked at 43 position.  

 

According to the journal the ranking was done based on four potential sources of economic vulnerabilities which included “public debt, foreign debt (both public and private) and borrowing costs (proxied where possible by the yield on a government’s dollar bonds).â€Â  The journal noted, “We also calculate their likely foreign payments this year (their current-account deficit plus their foreign-debt payments) and compare this with their stock of foreign-exchange reserves. 

 

A country’s rank on each of these indicators is then averaged to determine its overall standing.â€