Economy News: Central Bank expects Sri Lanka’s real GDP growth to decelerate to around 1.5 percent in 2020 before the economy recovers to meet its anticipated potential in the medium term.
“The COVID-19 pandemic would adversely affect the economic development over the year, contrary to previous expectations of a recovery in economic growth,” the Central Bank said, releasing its 2019 annual report.
The essence of the ongoing COVID-19 pandemic is such that its effect on the Sri Lankan economy’s output hinges on many unknown factors, according to Central Bank.
These include the further spread of the pandemic, the strength and efficacy of prevention steps, the degree of disruptions in supply, and the persistence of behavioral changes and other economic trends applicable to both domestic and global economies.
While recovering global economic activity is likely to be a slow process, steps to achieve normalcy in domestic economic activity may allow Sri Lanka to register a faster recovery, as domestic demand accounts for a significant portion of aggregate demand in Sri Lanka.
