Sri Lanka’s GDP to grow by 4.2 percent in 2019: analyst
Sri Lanka is expected to record an economic growth rate of 4.2 percent this year while this figure is expected to increase to 4.5 percent by 2020, reveals Standard Chartered Bank economist Saurav Anand, who notes that this is achievable although it surpasses the target set by the IMF.
He adds that the main focus of the government this year would be to settle its debts.
Micro stability, a tight monetary policy and static policy rates are deemed essential for Sri Lanka to achieve targets with Anand stating: “Overall, 2019 would be a tough year for Sri Lanka.”
With regards to foreign direct investment (FDI), 2020 seems to display promise especially with developments in relation to CIFC (Port City) and the Hambantota economic zone.
The private sector and banks are also expected to grow while the construction industry is likely to remain stagnant this year.
Talks with the IMF appear positive and the extension of its programme would be “a good sentiment for investors,” according to Anand.