The International Monetary Fund (IMF) yesterday predicted “broadly stable” growth for Sri Lanka in the next two years.
Releasing the Asia Pacific Region’s Economic Outlook, the IMF projects Lankan economy to grow by 6.3% this year and 6.7% in 2014.
Latest forecast also puts Sri Lanka’s growth above the average of South Asia, the GDP of which is estimated to grow by 5.7% in 2013 and 6.3% next year.
Commenting on South Asia, IMF’s Asia Pacific Economic Outlook said notwithstanding a modest growth recovery in India in a more favorable external demand environment, deep-rooted structural challenges are expected to exert a substantial drag on potential growth while keeping inflation at elevated levels by regional standards.
In its report titled ‘Shifting risks, new foundations for growth’, the IMF also said growth in ASEAN economies is expected to remain robust, mainly on account of resilient domestic demand, reported Daily FT.