Sri Lanka growth expected to recover to 7.5-pct in 2013: Central Bank

Nov 08, 2012 (LBO) – Sri Lanka’s economy will expand 7.5 percent in 2013 after slowing to 6.8 percent in 2012 helped by a global recovery, monetary easing and better weather for agriculture, the Central Bank said. The budget deficit which was targeted at 6.2 percent of gross domestic product for 2012 had hit 5.6 percent by July. The gap in the current account (government dis-saving) was up to 1.9 percent of GDP from 1.4 percent last year.

“Fiscal management during the remaining months of 2012 will be challenging,” the Central Bank said.

“To address the shortfall in revenue, the government has introduced several revenue measures to enhance revenue mobilisation during the remaining months of the year.

“In addition, strict measures to restrict expenditure within the budgetary estimates are being taken by the government.”

“Growth is expected to be broad based in 2013 with the performance in all sectors of the economy expected to improve,” the Central Bank said in a report released ahead of an annual budget to be presented later on Thursday.

“Global economic recovery and less uncertainty over policy responses, especially in the Euro area, coupled with an easing of both fiscal and monetary pol