26. February 2010


 

IMF Predicts as Lanka’s Economic Conditions Improving

 

The International Monetary Fund (IMF) office in Colombo recently issued a statement at the conclusion of a 10-day visit by a staff team from IMF headquarters, stating that Sri Lanka’s overall economic conditions are improving as expected and the economy is poised for a recovery this year. External balances are strong, remittance inflows continue at a high rate, tourism prospects are rapidly improving, and gross reserves remain at comfortable levels. This mainly reflects faster-than-expected infrastructure project implementation, higher interest payments and fourth-quarter revenue growth.

 

The IMF has further mentioned that despite this higher borrowing as well as a recent uptick in inflation, it continue to assess the central bank’s monetary policy stance as appropriate and predicts that average inflation for the year as a whole would stabilize in the high single digits. The IMF says that it will remain engaged in a constructive dialogue with the government.