Sri Lanka, July 10 -- Lower interest rates could stay for longer in Sri Lanka than in previous instances as Central Bank would be more cautious in changing track given the scale and magnitude of the economic shock dealt by the pandemic, says Tundra Fonder, the Swedish asset manager specialising in frontier and emerging market including Sri Lanka. Central Banks around the world, including that of Sri Lanka, turned unusually dovish, both at the onset and during the pandemic and assured readiness to provide unlimited support to their respective economies beset by the pandemic-induced shutdowns.
This assurance has powered the advances in equities around the world, including that of Sri Lanka, as seen from the recent ascendency of the indices a...