 "Developing nations will have to take 'harsh' measures: Soros")
"Money is no longer coming to developing countries and harsh choices will have to be made instead of waiting for things to get better," Soros said, adding that external global environment will be hostile in the future and funds would flow out of developing countries.
He said the slowdown of China's economy and the subsequent devaluation of its currency were undermining global financial stability.
"Unfortunately China has a major adjustment problem and it has a lot of choices and it can actually transfer to the rest of the world its own problems by devaluing its currency -- and that is what China is doing," the 85-year-old American business magnate and philanthropist said.
"We are facing a very serious transitional problem which is quite recent and it is, I would say, (something) that amounts to a crisis and we are at the beginning of that," the Hungarian-born multi-billionaire said.
"When I look at the financial markets, there I see a serious challenge, which reminds me of actually the crisis we had in 2008," he said at the Sri Lanka Economic Forum, which is backed by his Open Society Foundation and the Centre for Development at Harvard University.
China's central bank devalued the yuan on Thursday, then announced the biggest month-on-month drop in forex reserves. A World Bank report has highlighted weaknesses in the Chinese economy as the currency slid to its weakest since 2011.
The recent moves by China to depreciate the yuan have ignited fears that the world's second-largest economy was slowing more than expected and could trigger another wave of competitive currency devaluation in the region.
China is responsible for 17 per cent of the world's economic activity, so any downturn in spending there affects the rest of the world, experts say.
