Friday, 12 February 2021 22:05

Central Bank Governor presents rosy picture of economy Featured

Sri Lanka’s economy is managed through new policies in an ‘alternative way’ Central Bank Governor W D Lakshman said rejecting economic experts claim of fiscal and monetary set back the in the second quarter of 2020 to predict , doom and gloom situation for 2021.

The alternative policy is now being implemented came under criticism based on a political or ideological basis in his view, he said.

He was presenting a rosy picture of economy at a media conference in Colombo today.

It was important to have a positive view he said. A pick-up in business confidence has been seen in the purchasing managers’ index.

“It is important to note the government’s determination to move away from the, so far, heavy dependence on imports for foodstuffs,” he said.

“Sri Lanka was now using limited closures of areas instead of national lockdowns and business activity was picking up with people starting to move around.

Tourism, which was the most badly hit was also picking up he disclosed adding that the government was moving towards a mass vaccination campaign which would also help.

Sri Lanka was expecting gross domestic growth of 5.5 to 6.0 percent in 2021, recovering from a 3.9 percent contraction in 2019.Per capita GDP is expected to be 4,000 dollars.

Sri Lanka is targeting inflation of 4-6 percent in 2020.Private credit is expected to grow by 850 billion rupees.

Year end gross official reserves were targeted at 5.5 billion US dollars. Negotiations were underway with multilateral lenders, and foreign central banks as well as commercial banks for to get credit and swaps, details of which would be announced as they are finalized, he said.


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