Sri Lanka war-torn regions to show highest nominal growth: CB Governor

May 21, 2011 (LBO) – Sri Lanka former war-torn has shown the highest nominal growth among all regions (before inflation adjustment) after the end of a 30-year war and the momentum is expected to continue, Central Bank Governor Nivard Cabraal said. The war in the north ended in May 2009, but military activities in the Eastern province ended earlier.

In 2009 the Northern Province had grown by 14.1 percent in nominal terms, which was the highest among all provinces, followed by the East at 14.0 percent, Cabraal said.

The contribution to overall gross domestic product had increased to 3.3 percent in 2009 from 2.8 percent in 2006 in the North. In the GDP share had risen to 5.8 percent in 2009 from 4.9 percent in 2006.

“Although the figures have not been finalized for 2010, we believe the results will be similar to 2009,” Governor Cabraal told a forum in Colombo.

“We expect that the range of investments made in these provinces will result in a growth rate of around 13 percent per annum in these provinces from 2011 onwards for the next five years.”

Cabraal said the Central Bank had intervened to provide ‘financial inclusiveness’ to the population in the north and east just as the war ended with plans made ready six months befor