Stage set for high growth trajectory: CB Chief

Wednesday, 10 April 2013 02:31 - - {{hitsCtrl.values.hits}}

Cabraal says confident of 7.5% GDP growth this year and achieving ambitious medium-term macroeconomic framework

Central Bank Governor Nivard Cabraal yesterday declared that stage was set for a high growth trajectory over the next few years, starting with the economy rebounding this year with a 7.5% improvement up from 6.4% last year.

Following the launch of the Central Bank’s 2012 Annual Report yesterday, Cabraal said in an era of global uncertainty the economy had grown at an impressive pace in recent years. As opposed to average post-independence growth rate of 4.5%, the economy has grown by 6.7% during 2006 and 2012 and by 7.5% in the post-conflict period 2010 to 2012, he added.

With price stability being one of the core functions of the Central Bank, the Governor also stressed on the fact that single rate inflation has been maintained for 50 months, the longest period in post-liberalisation history in addition to describing as “unfolding a new chapter in price stability”.

“If we can remain at single digit levels for the next 12 months and beyond, it will be a great achievement,” Cabraal added.

Among several other achievements highlighted by Cabraal was maintenance of price system stability whilst banking sector assets surpassing Rs. 5 trillion, accumulation of foreign reserves along with a Balance of Payments surplus of $ 151 million last year as opposed to a deficit of $ 1 billion in 2011.

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He also emphasised that public debt being contained at 80% of GDP, last seen 30 years ago, was commendable too in addition to the Government’s conscious efforts towards fiscal consolidation.

“The stage is set for a high growth trajectory over the next few years. That is why Sri Lanka is targeting an ambitious medium-term macroeconomic framework,” the CB Chief said, adding that Sri Lanka would continuously strengthen the key pillars of sustained high economic growth.

“Sustained improvement in economic performance despite uncertain global economic environment will ensure continued peace and development,” Cabraal said at the launch of CB’s 2012 Annual Report with President Mahinda Rajapaksa as the Chief Guest.