Sri Lanka among slowest growing economies in South Asia

Wednesday, 5 October 2016 00:06 - - {{hitsCtrl.values.hits}}

Sri Lanka will be among the slowest growing economies in South Asia, according to latest regional comparison of forecast made by the World Bank.

According to the twice-a-year, South Asia Economic Focus released yesterday, Sri Lanka’s economic growth is projected to grow at 4.8% this year and improve to 5.0% in 2017. These estimates are only better than 3.5% for the Maldives, 0.6% for Nepal and 0.5% for Afghanistan in 2016 and the Maldives and Afghanistan next year. Sri Lanka’s growth will also be below average for South Asia which the World Bank expects to grow by 7.1% this year and 7.3% in 2017.

Sri Lanka’s relatively poor performance was despite South Asia having defied a sluggish world economy and solidified its lead as the fastest growing region in the world in 2016 according to the World Bank.

However the World Bank said

Sri Lanka’s rebound would be driven by increased private consumption and postponed investment in 2015.

“It is imperative for Sri Lanka to expedite high priority structural reforms to increase competitiveness, improve governance and consolidate its fiscal balance in order to ensure sustained growth and development,” the World Bank emphasised.

-See full report on P17