Lankapage Logo Recent Top Stories
CP 14 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Sri Lanka remains vulnerable to tightening of international financial conditions, World Bank says
Thu, Jan 16, 2014, 10:11 am SL Time, ColomboPage News Desk, Sri Lanka.

Jan 16, Washington, DC: Despite high economic growth and low inflation Sri Lanka remains vulnerable to tightening of international financial conditions due to its high external debt, the World Bank's latest Global Economic Prospects (GEP) report, issued Tuesday says.

The External debt as a share of GDP is modest in most South Asian countries, but in Sri Lanka, it is close to 80 percent of GDP, according to the GEP report.

Sri Lanka's large current account deficit, high foreign debt, and openness to capital flows suggest that it remains especially vulnerable to tightening of international financial conditions, the report cautions.

Sri Lanka experienced a growth of an estimated 7.0 percent in 2013 rising from 6.4 percent in 2012, with stronger manufacturing and services activity and a rebound in agriculture in the third quarter of 2013.

Sri Lanka's growth is projected to accelerate to 7.4 percent in 2014, mainly as a result of infrastructure spending, and consumption and services activity maintained by remittance inflows.

Over the medium term, however, Sri Lanka's growth is projected to slow to a more sustainable rate. The GEP report projects a growth rate of 6.5 percent for 2015 and 6.3 percent for 2016.

However, for South Asia regional GDP growth is projected to improve to 5.7 percent in 2014 in market price terms, and to rise to 6.3 percent in 2015 and 6.7 percent in 2016.

Lower international commodity prices helped ease inflation in Sri Lanka which experienced a significant decline in inflation momentum during the course of 2013.

Remittance flows to Sri Lanka experienced double-digit growth of 10 percent of GDP in the 2013 calendar year.

Sri Lanka's deficit has fallen in recent years, but is estimated to be nearly 6 percent of GDP in 2013.

The Current Account Balance as a Percentage share of nominal GDP is expected to decline to a projected -3.2 percent in 2016 from -4.4 forecast for 2014.

ColomboPage - Recent 10 Stories
International Commission of Jurists calls on Sri Lanka to implement recommendations of Consultation Task Force
-- [14 minutes ago]
President pledges to increase funding for research and development
-- [1 hour and 4 minutes ago]
Motor vehicle enthusiasts to gather at Ceylon Motor Show 2017 - a showcase of the best of modern cars and classic vehicles in Sri Lanka
-- [2 hours ago]
Sailors of USS Hopper restores the resting place of first US envoy to Sri Lanka in Galle
-- [2 hours ago]
Heavy rainfall expected in Sri Lanka as over one million people affected by severe drought
-- [4 hours ago]
President sets price ceiling for imported rice, instructs to expedite drought relief
-- [4 hours ago]
Police to check all vehicles for covering driver side windows
President to take action against removal of head of Lanka Coal Company
Three bidders for Sri Lanka national carrier shortlisted
IMF commends Sri Lanka's strategy to create financial discipline

Copyright © 2000, 2014 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.