Sri Lanka’s growth is strong but inflation and debt has to fall: IMF Rep

Dec 14,2012 (LBO) – Sri Lanka’s recent growth has been strong and ahead some of the fastest growing economies in Eastern Europe, Latin America and Asia, but inflation and national debt has to fall, IMF’s resident representative Koshy Mathai said. Economic growth in the last two year has averaged around 8.0 percent which was higher than Hungary, Czechoslovakia, Pakistan, India, Thailand, Russia, Mexico, Chili, Indonesia, Malaysia and Vietnam and Turkey among other countries.

Pretty Good

“Sri Lanka looks pretty good in an international comparison,” Mathai told a gathering of bankers in Colombo.

“This year of course growth is going to slow. May be we are looking at 6.5 percent growth – 6 to 7 percent. Even if it drops to that level…we will be better than a vast majority of countries.

On the inflation front, Mathai said Sri Lanka had more to do.

“Inflation has fallen dramatically,” Mathai said. “This is an extended period of low inflation we have had – relatively low. It is much better than Sri Lanka’s historical performance.

But there is room to go. I think we will all agree that Sri Lanka is still a reasonably high inflation country. There is still room to go.”

The Central Bank says there has been mor