Asia reopens, more hikes in Korea & Sri Lanka

Countries across Emerging Asia are making renewed efforts to reopen their borders to boost flagging tourism sectors. However, the recovery is likely to be very gradual, not least because China (which was the source of around one-third of all tourists to the region before the pandemic) is in no rush to reopen its border. The poor prospects for tourism will weigh heavily on the Thai baht over the coming year and lead to further balance of payments strains in Sri Lanka. Meanwhile, the central banks of Korea and Sri Lanka left interest rates unchanged at their scheduled meetings this week, but we think it won’t be long before both raise interest rates again