According to the report, in Sri Lanka, where output is currently above potential, annual growth is forecast to remain broadly stable at 7.2% in 2014, and over time, to moderate to about 6.9% in 2015 and 6.7% in 2016, slightly higher than estimates of medium-term potential growth for the country.
Sri Lanka’s annual growth picked up to a 7.3% pace in 2013 from 6.3% the previous year, led by services, stronger manufacturing activity, robust agricultural growth and a pickup in domestic demand partly reflecting easing of monetary policy.
As demand from the Euro Area and US improved in the second half of 2013, exports in Sri Lanka grew rapidly.
Despite acceleration in growth, Sri Lanka’s inflation fell from 6.7% in October 2013 to 3.2% in May, (partly due to base effects) although inflation momentum is starting to pick up, the report noted. Sri Lanka’s deficit has also fallen in recent years due to tight monetary policies.
![World Bank projects Sri Lanka to have strongest growth in South Asia in 2014 BUP_DFT_DFT-1-11](https://2img.net/h/www.ft.lk/wp-content/uploads/2014/06/BUP_DFT_DFT-1-11.jpg)
With the exception of Nepal and Maldives, all countries in South Asia face significant revenue shortfalls regarding budgeted amounts, the GEP report says.
According to the World Bank, GDP growth in South Asia in 2014 will be at 5.3%, rising to 5.9% in 2015 and 6.3% in 2016.
The GEP report says 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% in 2014 and the World Bank projects India’s GDP to grow at 6.3% for 2015-16 and 6.6% for 2016-17.
In South Asia while credit growth is slowing, domestic financial risks remain as non-performing loans (NPLs) remain an ongoing concern, the World Bank report says. 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.
Energy shortages and a fragile security situation in some countries remain impediments to private sector activity, the Bank says.
The World Bank says weak monsoon rains can have significant impacts on agricultural production, consumption, and GDP growth on the countries in the region, including Sri Lanka.
http://www.ft.lk/2014/06/13/world-bank-projects-sri-lanka-to-have-strongest-growth-in-south-asia-in-2014/
» CCS.N0000 ( Ceylon Cold Stores)
» Sri Lanka plans to allow tourists from August, no mandatory quarantine
» When Will It Be Safe To Invest In The Stock Market Again?
» Dividend Announcements
» MAINTENANCE NOTICE / නඩත්තු දැනුම්දීම
» ඩොලර් මිලියනයක මුදල් සම්මානයක් සහ “ෆීල්ඩ්ස් පදක්කම” පිළිගැනීම ප්රතික්ෂේප කළ ගණිතඥයා
» SEYB.N0000 (Seylan Bank PLC)
» Here's what blind prophet Baba Vanga predicted for 2016 and beyond: It's not good
» The Korean Way !
» In the Meantime Within Our Shores!
» What is Known as Dementia?
» SRI LANKA TELECOM PLC (SLTL.N0000)
» THE LANKA HOSPITALS CORPORATION PLC (LHCL.N0000)
» Equinox ( වසන්ත විෂුවය ) !
» COMB.N0000 (Commercial Bank of Ceylon PLC)
» REXP.N0000 (Richard Pieris Exports PLC)
» RICH.N0000 (Richard Pieris and Company PLC)
» Do You Have Computer Vision Syndrome?
» LAXAPANA BATTERIES PLC (LITE.N0000)
» What a Bank Run ?
» 104 Technical trading experiments by HUNTER
» GLAS.N0000 (Piramal Glass Ceylon PLC)
» Cboe Volatility Index
» AHPL.N0000
» TJL.N0000 (Tee Jey Lanka PLC.)
» CTBL.N0000 ( CEYLON TEA BROKERS PLC)
» COMMERCIAL DEVELOPMENT COMPANY PLC (COMD. N.0000))
» Bitcoin and Cryptocurrency
» CSD.N0000 (Seylan Developments PLC)
» PLC.N0000 (People's Leasing and Finance PLC)
» Bakery Products ?
» NTB.N0000 (Nations Trust Bank PLC)
» Going South
» When Seagulls Follow the Trawler
» Re-activating
» අපි තමයි හොඳටම කරේ !
» මේ අර් බුධය කිසිසේත්ම මා විසින් නිර්මාණය කල එකක් නොවේ
» SAMP.N0000 (Sampath Bank PLC)
» APLA.N0000 (ACL Plastics PLC)
» AVOID FALLING INTO ALLURING WEEKEND FAMILY PACKAGES.
» Banks, Finance & Insurance Sector Chart
» VPEL.N0000 (Vallibel Power Erathna PLC)
» DEADLY COCKTAIL OF ISLAND MENTALITY AND PARANOID PERSONALITY DISORDER MIX.
» WATA - Watawala
» KFP.N0000(Keels Food Products PLC)
» Capital Trust Broker in difficulty?
» IS PIRATING INTELLECTUAL PROPERTY A BOON OR BANE?
» What Industry Would You Choose to Focus?
» Should I Stick Around, or Should I Follow Others' Lead?