High Commission of Sri Lanka in India

The World Bank said Sri Lanka’s economy expanded by 3.3% in the second half of 2009. The Bank said it is the fastest rate recorded since 2002 showing stability despite a weak global economy.

The World Bank report released yesterday said that despite entering the Global Financial Crisis in a weak macroeconomic situation, the Sri Lankan economy has recovered rapidly.

The World Bank’s economic update for 2010 on Sri Lanka said the economic growth indicators confirmed a strong increase in economic activity for the region with agriculture, transportation, and communication sectors showing strong performance in the last quarter of 2009 and the hotel industry growing approximately 32% due to an influx of tourists after the end of the conflict.

Although inflation moved upward gradually since falling to 0.7% in September 2009 and reaching 6.9% in February 2010 before easing to 6.3% in March, it is expected to stay relatively low in 2010, due partly to increased agricultural production in the North, which will help contain food prices, the monetary body predicted.

In looking ahead the World Bank report says that increases in foreign direct investment and tourism, along with improved employment and large-scale reconstruction projects in the North, are expected to
sustain and accelerate Sri Lanka’s growth throughout 2010. The World Bank concluded that the short-term prospects for the Sri Lankan economy are positive.

Courtesy : www.news.lk