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Sri Lanka imports to fall in 2020, external account to improve: CB Governor

ECONOMYNEXT – Sri Lanka will see a slow improvement in external accounts, trade deficit will continue to fall in 2020, and there will be no adverse development in foreign exchange reserves, Central Bank Governor W D Lakshaman said.

“The contraction in imports is likely to continue this year,” he told a business forum organized by Ceylon Chamber of Commerce in Colombo.

“The 2019 decline in the trade deficit is expected to continue in 2020.”

There will be marginal improvements in exports, he said. Tourism will also continue to recover from the Easter Sunday hits, though it may be moderated by the impact of the coronavirus.

There will be ‘exchange rate stability at competitive levels,” he said.
Capital flows will also improve in 2020. There will more confidence in political stability among individuals and businesses he said.

“Foreign capital flows, portfolio and direct investment, are expected to grow with improving business confidence,” he said.

“The workers’ remittances, are expected to remain more or less stable without making significant gains.”

Sri Lanka economy will recover close to 4 percent in 2020, Lakshman said backed by improving business confidence, low and stable inflation. Sri Lanka has taken both fiscal and monetary measures to boost growth he said. (Colombo/Feb10/2020)

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