Positive signs in fiscal management - IMF

Sunday, 14 July 2013 - 20:16


IMF resident representative in Colombo, Koshi Mathai at the 14th Economic Summit of the Ceylon Chamber of Commerce in Colombo said Positive signs can be seen in fiscal management of Sri Lanka, especially in deficit reduction.


The Government has been successful in reducing the deficit and while overall deficit is declining, there is also a decline in the current account deficit.


There is a strong correlationship between Debt to GDP ratio and inflation and if the government debt increases the ratio increases and it will put pressure on inflation and lead to slow growth.