International Monetary Fund (IMF) Sri Lanka Resident Representative Dr. Koshy Mathai said Sri Lanka’s economic growth is expected to ease to 7 percent this year from an estimated 7.5 percent in 2010.
"Our estimates are conservative but like the Central Bank (of Sri Lanka), the forecast is for strong economic growth," Dr. Mathai said.
According to the Central Bank the economy is estimated to have grown 8 percent in 2010 and the forecast for this year is a growth rate of 8.5 percent.
Whereas Central Bank’s forecasted growth figures keep increasing, the IMF forecast dips this year from 2010. "This is because growth in 2010 was from a low base the previous year," Dr. Mathai said.
In 2009, Sri Lanka’s economy grew 3.5 percent.
Dr. Mathai said Sri Lanka’s businesses seemed to be in an unprepared frame of mind. He also said he could not find a satisfactory answer from the island’s business community as to why investments slow in growing. Dr. Mathai said foreign direct investments have not grown as fast as one would have liked to.
In order to maintain growth rates in excess of 8 percent each year, investments as percentage of GDP would have to increase from their high twenties to closer upon 40 percent.
source - www.island.lk
No comments:
Post a Comment