Wednesday, 10 January 2018 - 11:09
World Bank forecasts 5% economic growth in Sri Lanka


Growth in Sri Lanka is forecast to average 5.1 percent a year over 2018-2020, mainly reflecting strong private consumption and investment growth, the World Bank says.
It added that the exports will be supported by the reinstatement of the Generalized Scheme of Preferences (GSP+) with the European Union.

Issuing its annual flagship report titled, "Global Economic Prospects - Broad-Based Upturn, but for How Long?", the World Bank said that the economic activity in Sri Lanka expanded at an estimated 4.1 percent in 2017, below the June forecast as a result of disruptions from droughts and floods.
“Despite monetary policy tightening to ease inflationary pressures in the first half of 2017, credit growth remained strong, supporting private consumption and investment”, the report added.
It also said that Sri Lanka’s economic reform agenda, supported by World Bank and IMF programs, is expected to sustain macroeconomic stability and support potential growth over the medium term.
Public debt is expected to decline amid ongoing fiscal consolidation, which will open fiscal space and enable the country to allocate public spending toward human capital investments that support potential growth.
The World Bank said government’s adoption of the new Inland Revenue Act, which aims to simplify tax compliance, could mobilize additional revenue that could support growth-enhancing spending, including infrastructure investment.
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