Sri Lanka, Feb. 7 -- As the year 2018 drew to a close, the Sri Lankan currency was under attack on several fronts. The trajectory and forecasts of U.S. federal reserve tightening were causing a major exodus from Sri Lanka's capital markets. The trade deficit was unfavourable due to a credit boom, and GDP growth was sputtering for various reasons. With this problematic backdrop, a political inferno was also ignited.

Outflows from stocks and bonds totalled past a billion dollars in 2018. These outflows, initially caused by the trend of outflows from emerging markets on the back of fed tightening, ratcheted up into high gear during Sri Lanka's recent constitutional crisis which the Speaker of Parliament termed: "a coup without guns."

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