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Sri Lanka economy seen growing 6.5-pct in 2010: central bank

Apr 05, 2010 (LBO) - Sri Lanka's economy will bounce back from the effects of war and global recession with 6.
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5 percent growth this year, and maintain 7-8 percent growth in the medium term, the Central Bank said.
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Gross domestic product growth of 7.5 percent is anticipated next year and eight percent in 2012, it said in its annual report.
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The economy grew 3.5 percent in 2009, down from six percent in 2008, as the ethnic war and global recession took their toll.

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But the 30-year war ended last May opening up prospects for higher growth, the bank said.

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"The end to the prolonged internal conflict and the restoration of peace provide a greater optimism on economic prosperity providing a strong basis for long-term sustainable development, supported by appropriate policies."

The opportunities created by the restoration of peace will be complemented by the ongoing global economic recovery.

"The current low inflation and interest rate regime also provides a conducive environment to fuel economic activities," the Central Bank report released Monday said.

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"In the short to medium-term, moving to a high growth trajectory while maintaining price stability remains a key policy challenge."


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