World Bank projects favourable economic outlook | Sunday Observer

World Bank projects favourable economic outlook

Issuing the latest Sri Lanka Development Update, the World Bank’s half-yearly flagship report on the country’s economy speculated that overall fiscal deficit is expected to fall to 5.1 percent of GDP for 2017 mainly owing to the implementation of revenue measures and supported by a small primary balance.

This favourable economic outlook for Sri Lanka with narrowing fiscal deficit and declining public debt burden, the first to be seen in five consecutive years outlined that the fiscal deficit is expected to narrow to 3.5 of GDP by 2020.

The international financial institution said growth coupled with manageable inflation, is expected to reach 4.6 percent in 2017 and increase marginally over 5.0 percent beyond, driven by private consumption and investment growth.

“Although short to medium term growth will continue to be driven by non-tradable sectors, successful implementation of reforms should help the country to rely on productive tradable sectors in the long run,” the report projected.