Sri Lanka's economic growth expected above 3.5 pct in 2020

Source: Xinhua | 2020-03-10

Sri Lanka is expecting a 3.5 to 4 percent economic growth this year amid the global COVID-19 outbreak, Central Bank Governor Professor W. D. Lakshman quoted in local media reports said here Monday.

Lakshman said the ongoing global developments will have an adverse effect on Sri Lanka as well, but the Sri Lankan economy was expected to do better in 2020 than last year with a record a growth rate between 3.5 to 4 percent.

"The expected political stability after the elections and the presentation of the budget will boost investor confidence further," Lakshman said.

"The current conducive fiscal support and declining market interest rates are expected to compensate for the possible reduction of external demand to a great extent," he added.

Earlier, the Central Bank of Sri Lanka projected Sri Lanka's economic growth to exceed 4 percent in 2020 as there has been a notable improvement in business confidence with political stability and targeted measures taken by authorities to boost demand, it said.

Lakshman further said that the central bank will continue to monitor domestic and global macroeconomic and financial market developments, including the impact of the spread of COVID-19 globally and its effect on Sri Lanka, with a view to maintaining stable economic conditions in the period ahead while standing ready to provide liquidity to domestic financial market as necessary.