A report by the World Bank on South East Asia, noting structural barriers to competitiveness in Sri Lanka, predicted a decline in Sri Lanka's growth to 6.9 percent due to several factors including slowing down in the construction industry.
The report added that part of the decline in growth would be due to previous growth being artificially propped up by consumption due to increased public sector wages.
With competitiveness still remaining a challenge in Sri Lanka, due to the actions of the previous government, the growth of Sri Lanka will decline as the new government looks to make changes to move towards a more open and competitive market, the South East Asia Economic Focus report also added.
Noting that Sri Lanka's current growth had come from non-tradable sectors, the World Bank warned that it would be difficult to sustain future growth without increasing growth in export sectors, which lacked competiveness in Sri Lanka.
We need your support
Sri Lanka is one of the most dangerous places in the world to be a journalist. Tamil journalists are particularly at threat, with at least 41 media workers known to have been killed by the Sri Lankan state or its paramilitaries during and after the armed conflict.
Despite the risks, our team on the ground remain committed to providing detailed and accurate reporting of developments in the Tamil homeland, across the island and around the world, as well as providing expert analysis and insight from the Tamil point of view
We need your support in keeping our journalism going. Support our work today.
For more ways to donate visit https://donate.tamilguardian.com.
