Sri Lanka Central Bank sees economy rebounding in second half on flood reconstruction
Sri Lanka’s economy will rebound in coming months as the island nation begins to rebuild after devastating floods, and it could still expand by 4.5 to 5.0 percent for the full-year, central bank Governor Indrajith Coomaraswamy said on Monday.
The central bank had earlier estimated 2017 growth at 5 percent, higher than last year’s 4.4 percent, before the floods and landslides in May that killed more than 200 people and hit the agricultural sector hard.
In contrast, some main agriculture areas have suffered from severe drought since early this year.
The central bank, however, has not revised down its official growth estimates yet.
“The reality is somewhere between 4.5-5.0 percent,” Coomaraswamy told Reuters.
“There should be a rebound in the second half. Usually you have some reconstruction activities that come with rehabilitation activities after those kind of natural disasters.”
Sri Lanka’s economic growth slowed to 3.8 percent in the first quarter year-on-year from the previous quarter’s 5.3 percent as drought dragged on.
Analysts also say activity has been blunted by tight monetary and fiscal policies as the government faced a debt and balance-of-payment crisis in 2016.
Colombo in June last year got $1.5 billion loan from the International Monetary Fund with the commitment of economic and fiscal reforms.
The central bank has tightened monetary policy four times since December 2015 due to higher imports and credit growth. The government raised taxes last year to boost the government revenue and achieve fiscal deficit target agreed with the IMF.
(Reuters)
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there is thing called recycling for the economy is geared to this process. recycling is billion billion dollar industry. even houses are designed to be recycled to keep the construction industry rolling. Can we apply this formula to our economy. I say no for the shanties that were destroyed will b e replaced with more shanties .
If coomaraswami considers that this exercise leading to the rebounding of the economy of the economy his economic intution is as good as his president and the pime minister
I am depressed at seeing Dinosaurs in all corners of the country’s leadership, both political and administrative sectors.
We need leaders who can incarnate new representation of Sri Lanka as young, dynamic and innovative, capable of energising the country’s development, social justice, powers of persuasion, and its prestige
This guy is going bonkers.
He knows not where he stands.
He is relying on economic theories (outdated in the present age) dished out in Cambridge many decades ago.
He is also a Royalist and for sure “Disce Aut Discede” (Royal’s Motto) requires Royalists to protect their bretheren.
There are many in Cabinet from Royal; but most are blind.
This old man’s policies are driving our economy down the drain.
He was cricket captain in harrow while he could not get into Royal’s 1st eleven. A brown boy living in the University Hostel in the UK is tender meat to the suddha.
He got a PhD in Sussex University which is like a University in Moragahakande.
Now he is preaching outdated economics to the brown sahibs.
What a disgrace.
We should soon have a Sri Lankan “Macron – French president”, young and zip and literate and tolerant. Macron has energised France overnight with his charisma while are still under the stranglehold of ageing leaders and bureaucrats.
This proves what I always say. Just crame up and getting a university degree does not mean anything. About time Sri Lanka realize that and get business people to run the economy.
Ranjith,
I don’t like the word ‘Business People’.
The correct word in Entrepreneurs.
Entrepreneurs are people who do not fear failure.
In our Universities and in our schools, we are taught how to be safe in life. That means how to get a job in Government (and do nothing) but get paid regularly and enjoy the car permits.
That is what is wrong with Sri Lankan society.
They are not entrepreneurial and they hate taking risk and as a result, they do not use the POWER of their BRAINS.
MrHARISCHANDRA KARIYAWASAM. I agree with you.The correct word in Entrepreneurs. At the same time I like to point out that 100 people are doing the work of 5 people. In other word 95% people are over employed. The goverment should pay little extra than what they get in all types of jobs and ask these employees to stay at home. This will reduce the conjection.
Ranjith,
As you say, public service employees numbers, from top to bottom, can be cut down to 5 employees to every 100 employees.
Even the Secretaries to the Ministries, Assistant and Deputy Secretaries, Additional Secretaries and Divisional Secretaries are doing the peon’s work.
I rang a Sri Lankan Government Office from overseas recently regarding an issue. I timed my call to 9.00AM Sri Lankan time.
OMG, I was transferred to about 10 officers; the final officer said the Boss of the Section has the key to the file cabinet and he comes to work at 11.00AM daily because he uses his official car to drop 4 kids in different Colombo Schools and he has to fight the traffic before he reaches work.
The officer also added that the boss leaves at 2.30PM to pick up the kids and drive home.
The call consumed approximately 60 minutes. Isn’t that great performance in the digital age where primary means of communication is email and Twitter?
Exactly Mr HARISCHANDRA KARIYAWASAM, That’s why everybody wants to immigrate. I have no word to describe the poor state of that country. Crossing the road is a big achievement in Sri Lanka. every body has a big title as a Executive. Bloody junior clerks they are.. Every body carries a big lap top. Only thing they do with that is to surf adults sites. They are the best in the world for that and that is fro googel.