Sri Lanka GDP to contract in 2Q 2020, but recover in second half: CB

ECONOMYNEXT – Sri Lanka is expecting a contraction of gross domestic product in the second quarter of 2020 and a 1.5 percent GDP growth forecast could be revised in the future, a central bank official said.

The central bank projected a 1.5 percent GDP growth for 2020 after the Coronavirus epidemic started in 2020 down from around 4.0 percent at the beginning of the year.

Director of Economic Research Chandranath Amarasekara said there was a lot of uncertainty about the global as well domestic economic condition in the wake of the Coronavirus pandemic.

Sri Lanka’s first quarter GDP is expected to be released in the next week or so, after a delay.

“We may revise the forecast after we observe the first quarter data,” Amarasekera told reporters.

He said the central bank expected the second quarter GDP to contract but there would be a recovery in the second half, he said.

Several international agencies have projected a negative growth for the full year 2020. (Colombo/July09/2020)