COLOMBO, June 27 (Xinhua)-- Sri Lankan Central Bank on Monday predicts uncertain economic situation caused by Brexit will last for at least two years in Sri Lanka.
The latest report submitted to Sri Lankan Prime Minister Ranil Wickremesinghe said it would take at least two years for the UK to leave the EU as per section 50 of the Lisbon Agreement and, therefore, the global economic crisis that had already begun would last for two years.
As 40 percent of Sri Lanka's exports to Europe go to the UK, with the fall of the pound sterling, Sri Lanka would definitely be affected, the report said.
According to the report, Sri Lanka would not get the expected advantages from the Generalized System of Preference (GSP) plus facility. Sri Lanka lost the EU GSP plus during the performance of former government. The new government, which took office last year, gave a commitment to meet the expectations from the EU and implemented some legal amendments in order to be in line to regain GSP.
Meanwhile, Sri Lankan Prime Minister on Sunday announced Sri Lanks's turning toward Asia due to uncertainty triggered by Brexit.
Sri Lanka will have to go for trade ties with Asian nations in the South and Southeast Asia.
"We have already planned to sign Economic Technology Cooperation with India and a free trade agreement with China but we will start negotiations with Singapore for a free trade agreement shortly and will also think of South Korea as well," the prime minister said.