The ADB expects Sri Lanka will clock in a 5 percent growth in 2003, building on the back of renewed economic stability and a global recovery in the second half of the year.
rnldblquote This performance builds on the progress the Government has made in achieving short-run macroeconomic stability in 2002
dblquote , the Bank said today on the release of its quarterly economic review of the country. rn
rnBank forecasts also put inflation figures on a downward trend to 8.5 % for 2003, if supported by an appropriate monetary policy.rn
rnldblquote Inflation has been on a downward trend during the last few months, but the average price increase was still in double-digits for the year
dblquote , a statement said.rn
rn”Controlling inflation is a critical element of macroeconomic management, given the potential for political instability linked to continued increases in the cost of living”. rn
rnIt has also labelled ambitious Government plans of a deficit target of 7.5 percent of GDP in 2003 as lquote f