Taiwan defence spending boost, Sri Lanka rates on hold

Taiwan’s President William Lai this week unveiled a TWD1.25trn (4.5% of GDP) special defence budget but it is likely that this will be watered down by the opposition-controlled parliament. Even if it passes, the boost to Taiwan’s economy would be small. Elsewhere, Sri Lanka’s central bank on Wednesday left interest rates unchanged for a third consecutive meeting and appeared to push back against the prospect of any further cuts in the near term.