Sri Lanka’s 2014 economic growth upgraded to 7.0-pct by IMF

May 06, 2014 (LBO) – Sri Lanka’s economic growth forecast for 2014 has been upgraded to 7.0 percent by the International Monetary Fund in its latest regional outlook for the Asia Pacific region, up from 6.5 percent in December. The 6.5 percent growth for 2015 published following a post program monitoring mission has been kept unchanged.

Sri Lanka has ended a 2.5 billion US dollar IMF bailout program it entered in 2009, following a balance of payments trouble, but entered another one in 2011/2012 by trying to subsidize energy with state bank credit at a time when overall credit growth was already high.

Sri Lanka’s central bank has forecasted a gross domestic product of 7.8 percent for 2014 helped by a recovery in exports.

Sri Lanka reported gross domestic product growth of 7.3 percent for 2013 up from 6.3 percent in 2012 as the country recovers from a balance of payments crisis.