World Economy

Lanka GDP to Grow 5.3%

Lanka GDP to Grow 5.3%Lanka GDP to Grow 5.3%

Sri Lanka’s gross domestic product is projected to grow by 5.3% until end-2018, compared to a 4.8% growth in 2015 despite the multiple risks and challenges, a World Bank report said. “Growth is expected to increase to 5.3% in 2016 and beyond, driven by increased public investment and postponed foreign direct investments in 2015,” LBO quoted the report as saying. The World Bank said that the complex political environment curtailed FDIs last year, but noted that Sri Lanka would probably not be able to afford public investment through borrowings any longer. “Reduced drag from imports thanks to continued low commodity prices and the recent policy measures to curb import growth would also contribute to the increase in growth. The trade balance is projected to improve with reduced imports on policy tightening and continued low oil prices,” it added. It noted that inflation is likely to be in the range of 4.2-4.3%, following the unusually low inflation experienced in 2015 through pressure from the global environment and the fiscal expansion.