Sri Lanka economic growth projected at 8.0-pct in 2010

Dec 06, 2010 (LBO) – Sri Lanka’s full-year economic growth for 2010 is estimated at 8.0 percent is based on the latest data, Central Bank Governor Nivard Cabraal said, firming an earlier forecast of 7.5 to 8.0 percent. “It is estimated by our statistics team that Sri Lanka will record a growth of 8.0 percent for the year 2010,” Cabraal told Sri Lanka’s top bankers Monday.

“It is a very high growth when compared to the rest of the world. And that is a growth many advanced economies will give an arm and a leg to achieve.”

Sri Lanka’s department of census and statistics which is the official agency in charge of national income accounting said the economy grew 8.5 percent in the second quarter of 2010.

The Central Bank has policy rate of 7.25 percent, which is one of the highest in the world, but low by Sri Lanka’s historical standards. Sri Lanka ended a 30-year war in May 2009 and has kept inflation low at 7.0 percent by November 2010, which is lower than the 15 to 20 percent levels generated by the Central Bank in the past.