Business Times

Sri Lanka slip-sliding on economic targets

Sri Lanka is faced with prospects of an economic slip as targets were this week revised to accommodate moderate growth. The external sector developments for Sri Lanka were revised with Central Bank Governor Nivard Cabraal announcing that a slowdown in growth at 7.2% was not drastic when compared with the rest of the world.

He made these observations during a media briefing held at the Central Bank in Colombo on Tuesday.
Targets announced were exports at US$11.7 billion, imports at US$20.9 billion, remittances at US$6.5 billion, tourist arrivals over one million with earnings estimated at US$1.2 billion, tier II capital at US$1 billion, FDIs to grow to US$2 billion, public investment/GDP at 6.6% and debt/GDP ratio at 78% flat. Expenditure by the government on investment goods is targeted at US$5.6 billion while the petroleum imports were expected to moderate at US$5.4 billion.

Imports that had been on the rise upto February had moderated since May with the January – March figures indicating US$5.2 billion and this is expected to be limited to US$20.9 billion for the year, the Governor said.

Commenting on the recent moves in the exchange rate, Mr. Cabraal pointed out that the volatility was mainly due to “unfounded speculation” and noted that the market must not be moved based on “unnecessary viewpoints.”

In the meantime, the government expects to enter into a new relationship with the International Monetary Fund (IMF) with the Stand-by Arrangement period drawing to a close that would not involve disbursements.

He noted the IMF-SBA tranche of US$425 is expected to be completed by end July and discussions were expected to commence in June on their way forward. The reason for new relationship was based on the current “hostile global environment” to ensure they obtain the required endorsements through a surveillance programme, he explained.

A slight reduction in garment exports has been seen in the first few months, but Mr. Cabraal believes there would continue to be a demand for clothes. However, he noted “it remains to be seen how Sri Lanka maintains its niche markets.”

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
Controversial NSB-TFC deal to be reversed this week
India’s ITC now finalises deal, Sheraton moves to Kollupitiya
Tug of war between Treasury and BOI hinders US$2 billion FDI target
SriLankan mulling over air taxi operations
EDB fracas continues, meets COPE on June 8
Comment - Lynch the culprits
Sri Lanka has one of the best tourism products in the world
President must act to nab and expose fraudsters
PBJ opposed to multi-tea blending proposals
German cruise liner aims to bring 4,000 visitors in Dec-March
Gearing the Colombo bourse for growth
Discussion on 'what happens in boardrooms"
Citrus Leisure appoints two new directors to its board
Senseless action by SL Govt. to permit duty-free imports of luxury yachts
Exports of accounting could exceed IT : SLASSCOM
Fitch assigns an "A (lka)" Rating for Sampath Leasing and Factoring Ltd
Emirates Group announces 24th consecutive year of profit
Vista Advertising bags top HP Award
Singer Finance net profit grows by 106% in 4th quarter
99X Technology wins' Arch of Europe' Gold Award for Quality and Technology
Union Assurance insurance premium details thro’ SMS
Etisalat and education
Baurs Healthcare unit annual convention
UNIDO tests hydrogen energy entry in Sri Lanka
Allegations against pharma
Lovell takes over as Union Bank's head honcho
Learning from mistakes is hard work
Sri Lanka slip-sliding on economic targets
Haycarb sales up at Rs 8.5 bln, pre-tax Rs 724 mln in 2011/12
Japanese funding for Balapitiya resort hotel
Cinnamon Lakeside Colombo listed as 'Most Valued Hospitality Brand'
Urgent need to improve Balance of Payments
Gulf Air ranked ‘Best Family Friendly Airline’ once again
Senior Minister urges taking advantage of Euro zone crisis
Amitha Gooneratne joins DCSL Group as the MD of Melstacorp Ltd
ComBank to link its ATMs to China UnionPay
DFCC Vardhana Bank's profits up
Thomas Cook Holidays returns to Sri Lanka through Sparklink
Nine respond to Trinco RFPs


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2012 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution