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Sunday, January 06, 2013 - 08.00 GMT

Sri Lanka entering 2013 with better prospects


Sri Lanka is entering 2013 with an improving external environment, a stable exchange rate and favourable weather for agriculture, compared to last year, Treasury Secretary P B Jayasundera said.

"Though there have been severe floods, the damage has been minimal as far as production activities are concerned," he said.

"All reservoirs are full. In my judgment water resources that we have been blessed with in the last few weeks is worth about two billion dollars if somebody wants to put a number on that."

He said about 70 percent of power was now hydro, tea and rubber production was good and the Maha (main) cultivation season would be "exceptional".

In 2012 Sri Lanka has had 4.5 months of drought, which in addition to hurting rice and tea production had also hit power generation, he said.

Jayasundera said the trade deficit and imports had reduced.

"Price stability has come due to the monetary and fiscal co-ordination that prevailed," he said.

Sri Lanka is expected to have grown by around 6.5 percent of GDP in 2012.

"We are approaching 2013 with an optimism of the economy bouncing back to 7.5 of GDP- the Central Bank has already projected," Jayasundera said.

"We will not go into revisions at this stage, but when final numbers of the Central Bank comes probably we will look at the benefits of favourable weather, the global recovery" quoting Treasury Secretary LBO reported.






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Last modified: January 07, 2013.

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