Sri Lanka to grow 7.0-pct in 2015, driven by consumption: ADB

COLOMBO (EconomyNext) – Sri Lanka’s economic growth will slow to 7.0 percent in 2015 from 7.4 percent a year earlier amid political uncertainty, and will be mainly driven by consumption, the Asian Development Bank said.

"The composition of GDP (gross domestic product) is likely to see a shift from investment to consumption in 2015," Tadateru Hayashi, ADB’s Senior Country Economist for Sri Lanka said.

"Price reduction of food and fuel will encourage private consumption and a shift towards, recurrent expenditure in the budget will increase government consumption."

In 2016 growth is expected to pick up to 7.3 percent with political undertainty ending.

Following the election of President Maithripala Sirisena in January, parliamentary poll are likely to be held later this year.

Inflation is expected to remain low around 2.0 percent helped by low commodity prices in 205 Exports would pick up with economies of key trading partners picking up. Imports would also rise, though a slowing of infrastructure spending may keep the pace down.

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