ADB upbeat on Sri Lanka, retains 2011, 2012 growth forecast

Asian Development Bank (ADB) remains upbeat on Sri Lanka retaining its growth forecast unchanged for 2011 and 2012 though revising South Asian regions figure in its latest update.

Releasing its Asian Development Outlook Update, ADB indicated Sri Lanka’s 8% growth forecast for 2011 and 2012 is intact and is in line with its original estimate. This is on account of robust exports and tourism. However for overall South Asia it revised growth rate downwards to 7.2% for 2011 in the update from 7.5% previously and to 7.7% from 8.1%.

Whilst growth forecasts for India and Pakistan have been revised downwards only Bangladesh figure had been revised upwards.

ADB said favourable export prices kept growth brisk in Bangladesh and Sri Lanka with the latter enjoying benefits of revival in tourism as well. The Asian Development Bank (ADB) has cut its 2011 and 2012 growth forecasts for developing Asia amid ongoing worries about weak external demand from its key trading partners.

In its Asian Development Outlook Update 2011, released yesterday, ADB trimmed its full year forecast to 7.5% from 7.8% seen in April. The 2012 projection is also lowered slightly to 7.5% from 7.7% previously.