Sri Lanka economy to grow over 8.5-pct in 2012: Central Bank

Nov 21, 2011 (LBO) – Sri Lanka’s economy is expected to grow between 8.5 to 9.0 percent in 2012 and inflation would be kept in the mid single digits, the Central Bank said in a report released ahead of the budget. Exports are projected at 14 percent and imports at 10 percent.

Growth in the former war-torn north and the east, a higher contribution from agriculture will drive growth in 2012, the Central Bank said in a report released ahead of the budget. For 2011 Sri Lanka is projecting a growth of 8.3 percent.

Factory industry is expected to see demand from both foreign and domestic markets with construction, food processing, rubber-based industries and new sectors such as ship and boat building the central bank said.

Services sector is expected to see further growth in domestic and international trade, tourism, transport, telecoms and financial services.

“Inflation is targeted to maintain at mid-single digit levels in 2012,” the Central Bank said.

“Money supply would be maintained at a level compatible with the expected growth in the nominal GDP in 2012.”

International commodity prices may rise next year amid uncertainty but domestic policy would be oriented to counter such developme