Sri Lanka’s Central Bank Governor revises growth forecast

Sri Lanka’s Central Bank Governor Indrajit Coomaraswamy predicted that economic growth on the island would be just 4 percent for 2018, lower than previous estimates.

“This is not a formal estimate that I am giving you,” he told reporters, but if one is realistic, it is unlikely that growth will be more than 4 percent this year”.

“Our potential growth rate, we see as being 5.75 percent. So, there is a significant output gap,” he added. 

Sri Lanka’s Central Bank had earlier predicted a 5-5.5 percent growth rate for 2018.

In 2017, the economy grew at just 3.1%, reportedly the slowest growth in 16 years.

Read more from AFP here and FT.lk here.

 

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