Sri Lanka economic growth to pick up in 2013: ADB

Apr 10, 2013 (LBO) – Sri Lanka’s economic growth will pick up to 6.8 percent in 2013 from 6.4 percent and extend to 7.2 percent in 2014, the while there will also be positive export growth, the Asian Development Bank has said. Sri Lanka’s merchandise exports will pick up 4 percent in 2013 and 5 percent in 2014 and imports will grow 6 percent in and 10 percent in the same period, the regional lender said in its Asian Development Outlook report.

Sri Lanka’s central bank is more optimistic, expecting economic growth of 7.5 percent and export growth of about 10 percent.

Sri Lanka’s exports received a setback from weak European demand and also the loss of preferential tax status due to alleged violations of human rights of the island’s citizens by the rulers.

The ADB said inflation would be around 7.5 percent in due to declines in commodity prices and exchange rate stabilization, though the Central Banka and some independent analysts are more optimistic about inflation.

ADB said Sri Lanka had “achieved remarkable progress in the power sector by increasing the national electrification ratio from 29 percent in 1990 to 94 percent in 2012.

“However, high costs still plague the sector,” the ADB said. “Due to th