Sri Lanka to be fastest growing country in South Asia: World Bank
Posted on June 14th, 2014
COLOMBO, June 12 (Xinhua) — Sri Lanka is expected to post the strongest economic growth in South Asia in 2014, hitting 7.2 percent, according to a Word Bank’s latest report on Thursday.
According to the report, Sri Lanka’s annual growth is forecast to remain broadly stable at 7.2 percent in 2014, and over time, to moderate to about 6.9 percent in 2015 and 6.7 percent in 2016, slightly higher than estimates of medium-term potential growth for the country.
However, the estimates are behind the central bank’s projection of a 7.8 percent growth for 2014 and an 8 percent growth for 2015 and beyond.
Sri Lanka’s annual growth pace picked up to 7.3 percent in 2013 from 6.3 percent the previous year, boosted by services, stronger manufacturing activity, robust agricultural growth and a pickup in domestic demand partly due to the easing of monetary policy.
As demand from the euro area and the United States improved in the second half of 2013, exports from Sri Lanka grew rapidly, the World Bank observed.
Despite acceleration in growth, Sri Lanka’s inflation fell from 6.7 percent in October 2013 to 3.2 percent in May this year, the report noted. Sri Lanka’s deficit has also fallen in recent years due to tight monetary policies.
With the exception of Nepal and the Maldives, all countries in South Asia are faced with significant revenue shortfalls, the report said.
According to the World Bank, GDP growth in South Asia in 2014 will be at 5.3 percent, and it will rise to 5.9 percent in 2015 and 6.3 percent in 2016.
The report said most of the acceleration is localized in India, supported by a gradual pickup of domestic investment and rising global demand.
India will grow at 5.3 percent in 2014 and the World Bank projected India’s GDP to grow at 6.3 percent for 2015-16 and 6.6 percent for 2016-17.
While credit growth is slowing in South Asia, domestic financial risks remain as non-performing loans (NPLs) remain an ongoing concern, the World Bank report said. Sri Lanka has the second lowest NPLs as a share of total loans in South Asia.
According to the global lender, South Asian countries are vulnerable to political developments in Ukraine and Russia that could result in tighter international oil supplies, given the reliance of South Asia on imported crude oil.
June 14th, 2014 at 5:02 pm
This article has MISSED one important thing.
World bank said SL will be the fastest growing south Asian economy IF GOSL does what the world bank says.
NOT otherwise.
Should we accept world bank dictates is the question!!
June 15th, 2014 at 5:25 am
Lorenzo,
Listened to Champaka as directed by the editor (many thanks for him). It is heartening to here his answers to many questions. He said “powerful energy underworld” was not happy with Elect Board becoming profitable after many years, that led to his removal but he appear determined to force MR in the right direction. It is in Sinhala but must see.
A lot of encouragement to Sinhalas, Buddhists and old fashioned Lankan Muslims.
He said 71% of 76% voters of the east voted for TNA after receiving all the benefits for Sinhalas. He exposed HakHim well. I couldn’t fault him anywhere. Very close to what we are pushing for.
June 15th, 2014 at 8:36 am
Lorenzo: You are right. Sri Lanka should not be dictated by the US owned and controlled World bank or the IMF. There is an alternative. The BRICS nations have set up their own bank, mainly financed by China and Russia. Russia has also set up a separate ratings agency to that of Moodys.
Both are meant as a strategic alternative to the world organizations who put US policies first before what they are intended to do.
Regarding the article it is wonderful to read the economic growth rate in Sri Lanka. Just a word of caution, I pray and hope it will be not at the cost of Sri Lanka’s unique standing as one of the 25 biodiversity hotspots of the world. I pray and hope that it would not translate to wanton destruction of Sri Lanka’s famous forests and Jungles.
June 15th, 2014 at 1:42 pm
Just one month after Muslims sexually assaulted a Sinhala youth in Aluthgama on POSON POYA DAY a Muslim group attacked a Buddhist monk and his driver.
These are ORGANIZED TERRORIST ATTACKS.
SUNNI AL QAEDA groups are active in Beruwala and Aluthgama.
e.g. The 2009 Beruwala Muslim clashes that killed 15 people inside mosques was a wake up call that NEVER reached the fools in the govt.
Govt. MUST nip this Sunni Al Qaeda TERRORISM in the bud (5 years late even now) before it escalates.
BBS should also be restrained. They CANNOT take the law into their hands.