Central Bank expects economic growth to exceed 4-pct this year

Jan 30, 2020 (LBO) – Sri Lanka’s economic growth will exceed 4 percent in 2020 as there has been a notable improvement in business confidence caused by political stability and targeted measures taken by authorities to boost demand, the Central Bank Governor said.

“Revival in economic activity & confidence, fiscal measures, and credit relief package, declining interest rates will help sustain the acceleration of credit growth over time,” Professor W D Lakshman said.

There have been notable improvements in the external current account despite various disruption the country faced in 2019. The exchange rate has remained in 2019 and as well as in January 2020.

“The reduction of rates by 50bps caused a further reduction of the cost of funds faced by financial institutions thereby allowing them to pass the benefit of reducing the cost of funds to the economy.”

According to the Central Bank, economic growth in 2019 is likely to be around 2.6 percent.

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