Lanka GDP to Grow 4.4%

Sri Lanka’s economy is projected to grow 4.4% this year and 5% in the medium term, supported by a recovery in agriculture and industry and robust growth in services, the International Monetary Fund said, Reuters reported. “Following a series of weather-related shocks in 2017, the economy is gradually normalizing... Inflation is projected to revert to around 5% by end-2018, as food prices stabilize,” the global lender said in a statement. Meanwhile, Sri Lanka’s economy remains vulnerable to adverse shocks due to its large public debt and low external buffers, the IMF said. The IMF approved a $1.5 billion three-year loan for Sri Lanka in mid-2016 after the government agreed to tough fiscal and monetary policy measures including tax reforms and a flexible currency exchange rate. This year’s growth will be supported by a recovery in agriculture and industry and robust expansion in the services sector, while annual growth rates are expected to reach 5% over the medium term.