Sri Lanka to grow at 5.3-pct in 2016, 2017: World Bank
Apr 11, 2016 18:47 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT – Sri Lanka’s economy is expected to grow at 5.3 percent in 2016 and 2017 driven by increased public investment and postponed investments in 2015 with South Asia remaining the world’s fastest growing region, the World Bank said.
Led by robust growth in India, South Asia shows resilience in the face of turbulent international markets, with economic growth forecasted to gradually accelerate from 7.1 percent in 2016 to 7.3 percent in 2017, it said.
The twice-a-year South Asia Economic Focus said the region’s economic performance prospects remain strong due to its limited exposure to global turbulence, coupled with increasing investment activity.
In Sri Lanka, the report said, the challenging global environment has “taken a toll on the economy with reduced exports and remittances; and significant capital outflows, leaving Sri Lanka with higher public debt, lower reserves and rising inflation.”
The report warned that for South Asia, there are also signs of “fading tailwinds”.
Capital flows to the region have declined and remittances from oil exporting countries have started to weaken, the World Bank said.
“Fuel and food prices remain low but are unlikely to keep falling. As a result overall output growth is slower than previously anticipated and inflation has recently been creeping up.”
(COLOMBO, April 11, 2016)