Sri Lanka expects 6.0-pct growth from 4Q: CB Governor

Nov 12, 2009 (LBO) – Sri Lanka’s economic growth is projected to touch 6.0 percent in the fourth quarter of 2009 allowing the country to return to a higher growth path from 2010, Central Bank Governor Nivard Cabraal said. Cabraal said government tax revenues, another direct indicator of economic activity, have also picked up.

“Overall we should have 6.0 percent or slightly less than 6.0 as the growth for the final quarter,” Cabraal said.

“If we have that what it will mean is that we would then be moving into the path of high growth once again.”

Cabraal said internal projections estimated growth for agriculture at 7.0 or slightly over, around 6.0 percent for industry and between 5.0 and 6.0 percent for services.

Central Bank is expecting Sri Lanka’s economy to expand 3.5 percent during the full year following slowdown in the first part of the year.

Sri Lanka’s statistics office estimated the economy to have expanded by 1.5 percent in the first quarter and 2.1 percent in the second quarter.

After dipping sharply Sri Lanka external trade, a good barometer of economic activity, has picked up.