Growing Strong

Sri Lanka President Maithripala Sirisena (R) and Prime Minister Ranil Wickremesinghea (L) Photo -S.KODIKARA/AFP/Getty Images)

The economy is expected to overshoot its initial year-end estimate of 5.5 percent as benefits of a 19-month ceasefire kick in.
The Central Bank said Tuesday that the economy grew by 5.6 percent for the first six months largely driven by the services and industrial sector.rn

rnThe bank said consumer demand has outstripped investor confidence but warned delays in implementing large-scale infrastructure projects will curb growth.rn

rnTo maintain lower inflation, the bank urged authorities to link the upcoming wage hike to productivity improvements.rn

rnThe banks Director Statistics, Dr. Anila Dias Bandaranaike said second-quarter expansion of 5.5 percent, came despite floods in May that destroyed paddy, tea and rubber fields in the South.rn

rn”In plantation agriculture, tea production, which recorded a growth of 10 percent in the second quarter of 2002, declined significantly by 6.7 percent, mainly owing to floods,” she said, adding that a 24 percent drop in fisheries was an unusual phenomenon. rn