Sri Lanka will be hard pressed to meet its key economic targets this year, due to higher international crude oil prices, a protracted drought and new welfare spending measures puts a squeeze on the public purse.
The impact is likely to put pressure on the balance of payments, budget deficit, interest rates and inflation, with the stockpile of US$ 3,218 mn reserves pressed in to keep the rupee at 98 levels against the US dollar. rn
rnThe Central Bank on Friday trimmed its full-year growth forecast from 6.0 percent to 5.5 percent this year, but warned that politicking and adverse weather conditions could crimp sustained economic development.rn
rnPresident Chandrika Kumaratungas United Peoples Freedom Alliance government has said they will adopt mixed economic policies to propel growth endash this deviates from the previous United National Party government, which adopted a capitalist approach, with a firm grip on the public purse.rn
rnSince taking oaths this month, the new government has so far ann