Sri Lanka hopes for current account surplus in BOP after 2016: CB Governor

Aug 16, 2013 (LBO) – Sri Lanka hopes to have a current account surplus in the balance of payments after 2016 Central Bank Governor Nivard Cabraal said. A capital account deficit country, or a country that builds up foreign reserves could have a current account surplus.

“Sri Lanka will have inflows to the country,” Cabraal told a forum organized by Standard & Poor’s in Colombo.

“We will become a current account surplus country.”

He said current revenues from the ruling administration’s ‘five hubs’ concept will increase in the future with tourism, airport and port services, business process outsourcing revenues were set to increase.

“Education and health services are being promoted and after 2016 we will see a net foreign exchange surplus country,” Cabraal said.

“Some of you will be looking at investments abroad.”

Cabraal said Sri Lanka’s petroleum sector is also developing with the second bidding round to be concluded shortly.

Sri Lanka has a current account surplus partly because the capital account is partially closed for outward investments and because the government is a heavy borrower abroad.