Sri Lanka’s growth downgraded to 3-pct for 2019

ECONOMYNEXT – Sri Lanka’s growth forecast for 2019 has been downgraded to 3.0 percent from an earlier 4.0 percent, though a recovery is underway from Easter Sunday blasts, Central Bank Governor Indrajit Coomaraswamy said.

"We expected growth to be about 4.0 percent," Governor Coomaraswamy told reporters. "We have revised it down to 3.0 percent of GDP."

"Certainly the second quarter growth will be disappointing."

He said the fourth quarter will see a pick up partly due to base effects of lower growth in the last quarter of 2018.

The hit from Easter Sunday blast, which was taken mostly by the tourism sector is recovering faster than expected, Coomaraswamy said.

The rapid removal of travel advisories was helping bring tourists back, he said.

"I think many countries wanted to help us"

Analysts who watched falling credit and imports in early 2019 had already expected growth to fall given past experience with currency crises.

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