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Central Bank expects economic growth to reach 4% this yea

Economy News Update: Economic growth in Sri Lanka will surpass 4 percent by 2020 as there has been a notable improvement in business confidence induced by political stability and targeted action taken by authorities to boost demand, the Governor of the Central Bank said.

“The revival of economic activity & trust, fiscal policies and the credit relief package will help to maintain the acceleration of credit growth over time,” said Professor W D Lakshman.

Despite various challenges the country encountered in 2019, there have been significant changes in the external current account. In 2019 and as well as in January 2020 the exchange rate stayed.

“The reduction of rates by 50bps triggered a further reduction in the cost of funds faced by financial institutions, thereby allowing them to pass on the benefit of reducing the cost of funds to the economy.” According to the Central Bank, economic growth is expected to be around 2.6 per cent in 2019.