Despite IMF gloom, PB upbeat on boom

Thursday, 28 February 2013 01:18 - - {{hitsCtrl.values.hits}}

Reuters: Sri Lanka’s economy will expand between 7-7.5% during 2013, the Treasury Secretary said, shrugging off a lower forecast by the International Monetary Fund which has warned of risks to the island’s economy.

“With the supply side acting very favourably, the monetary expansion of 15% should generate a decent economic growth rate in the range of 7-7.5%,” P.B. Jayasundera, told a Foreign Correspondent Association (FCA) Forum late on Tuesday.

The IMF projected growth at 6%, saying earlier this month that the economy is slowing more than the Government expects, and facing risks from high inflation, lower tax revenue and slow structural reforms in State enterprises.

Jayasundera said inflation would stabilise at around 8% thanks to improving food supply. He said the Government hopes to stick to the budget deficit target of 5.8%.