Sri Lanka expects 3.5 – 4.0% growth in 2020, with limited hit from Covid-19

March, 6, 2020

Sri Lanka is expecting 3.5-4.0 % growth in 2020, amid a hit from Coronavirus  (COVID -19) outbreak, Central Bank Governor Prof. W. D. Lakshman said.

“The ongoing developments will have an adverse effect on Sri Lanka as well, but we still expect the Sri Lankan economy to do better in 2020 than last year, and record a growth rate between 3.5%-4%. The expected political stability after the elections and the presentation of the Budget will boost investor confidence further. The current conducive fiscal support and declining market interest rates are expected to compensate for the possible reduction of external demand to a great extent.” Prof. Lakshman said whilst addressing the media during a press meeting in Colombo yesterday (5).

Earlier, the CBSL projected Sri Lanka’s economic growth to exceed 4%  in 2020 as there has been a notable improvement in business confidence caused by political stability and targeted measures taken by authorities to boost demand.

Governor further noted that the central bank will continue to monitor domestic and global macroeconomic and financial market developments, including the impact of the spread of COVID-19 globally and its effect on Sri Lanka, with a view to maintaining stable economic conditions in the period ahead while standing ready to provide liquidity to domestic financial market as necessary.