Sri Lanka 2011 economic growth, inflation on target: CB Governor

Chairman of the Colombo Stock Exchange Dumith Fernando presenting the sponsorship cheque to President of CA Sri Lanka Manil Jayesinghe

Dec 15, 2011 (LBO) – Sri Lanka’s 2011 economic growth is likely to come slightly below an earlier expected 8.3 percent and inflation will be below 6.0 percent, Central Bank Governor Nivard Cabraal said. “Growth may be a little below 8.3 percent,” Cabraal said. “But it will be higher than 8.0 percent.”

Cabraal said external conditions such as volatility in the Europe may stabilize next year.

Sri Lanka’s inflation has been checked with a stable exchange rate acting as an external anchor for inflation though there was a devaluation of about 3 percent of the exchange rate in November.

But Cabraal said year-end inflation is expected to be below 6.0 percent.