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Tuesday, June 18, 2013 - 6.15 GMT
Sri Lanka growth to be on track - CB Governor


Sri Lanka is expecting 7.5 percent growth this year despite a slowdown in exports, and adverse weather hitting fisheries, Central Bank Governor Nivard Cabraal said.

The Governor said gross domestic growth in the first quarter is expected to be close to 6.0 percent.

"If we have that number our 7.5 percent number could be reached," quoting the Governor LBO reported.

"That was the highest base (quarter) in the previous year. So if we have six or close to six percent it will give us the confidence to keep our numbers without a change," he said.

Cabraal said bad weather had hit fisheries, which may also impact inflation in the short term, but he was also confident of maintaining single digit inflation.

He said he would have been happier with stronger exports, which has shrunk this year, but the economy was no longer only dependent on exports.

The hotel sector as doing well and lots of investments were taking place, he said in addition to other areas like remittances, which were also doing well.

Higher rainfall, which reduces energy produced from imported oil, adds to domestic value addition or gross domestic product.

The Central Bank has cut its policy rate by 50 basis points April.






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Last modified: June 18, 2013.

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