Sri Lanka’s economy expected lag behind other Asian countries this year: ADB

Sri Lanka is expected to trail behind other Asian nations again this year, after lagging the spectacular growth of developing Asia in 2004, the Asian Development Bank said. Sri Lanka is expected to trail behind other Asian nations again this year, after lagging the spectacular growth of developing Asia in 2004, the Asian Development Bank said. In 2004, Sri Lanka’s growth rate fell to 5.4 percent from 6.0 percent a year before, as a Marxist backed subsidy oriented government, responded to rising oil prices by printing money and subsidising energy, driving the country towards a balance of payments crisis.

The Manila based bank cut Sri Lanka’s 2005 economic growth forecast to 5.2 percent from an earlier projected 5.5 percent.

But the bank said other Asian countries would grow robustly despite the tsunami and high oil prices, as they did last year.

“The upbeat outlook draws on the strong growth momentum gained through spectacular economic performance in 2004, when the, when the economies in developing Asia and Pacific registered gross domestic product of (GDP) of 7.3 percent in 2004,” an ADB statement announcing the release of the Asian Development Outlook said.
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