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World Bank predicts Sri Lanka’s economic growth at 3.3 pct for 2020

Economy News Update: Sri Lanka is expected to grow by 3.3% in 2020 compared to a projected 2.7% in 2019, while maintaining a tight budget, the World Bank said. “In 2020, growth in Sri Lanka is projected to rise to 3.3 per cent,” said the Global Economic Prospects report.

“Afterwards, acceleration will be supported by recovering investment and exports as long as the security challenges and political uncertainty of 2019 dissipate.” “Growth is expected to stabilize around 3.7 percent over the rest of the forecast horizon, in line with potential growth.” The World Bank said low tax revenues and higher public spending in 2019 resulted in a higher budget deficit, and new ta.

“The lack of progress in reforms to boost tax collection could result in more severe revenue shortfalls and bring more pressure on high fiscal deficits.” “This could have negative consequences for investment in infrastructure, and hence for projected growth, as well as for the fiscal room available to respond to potential cyclical declines.”