Sri Lanka, May 17 -- The prevailing global trends will exert stagflationary pressure on the Sri Lankan economy, a top economist with local and overseas experience in high-ranking positions, told Sunday Observer Business.

Speaking on the condition of anonymity, he said the current macroeconomic fundamentals provide buffers that create policy space to partially mitigate these adverse effects.

The economist said that this may be attributed to the new macroeconomic policy paradigm introduced over the past three years as part of the IMF-supported Extended Fund Facility (EFF) program.

He stressed that it is imperative that all stakeholders remain committed to maintaining the new macroeconomic framework, while structural reforms should be acc...