The Eighth and Final Review under the Stand-By Arrangement discusses policies and reforms undertaken by the Sri Lankan authorities. 2012 has shown robust growth in GDP supported by increased agricultural and construction activity. However, a weakening global demand has been an impediment to real...

The macroeconomic stability of Sri Lanka is analyzed. Reflecting high domestic inflation relative to trading partners, the real effective exchange rate appreciated by 2 percent. Infrastructure development is a central element of the government’s medium-term development strategy. Further...

This paper examines Sri Lanka’s Request for a Three-Year Arrangement Under the Poverty Reduction and Growth Facility (PRGF), and a Request for an Extended Arrangement. In line with the Poverty Reduction Strategy Paper (PRSP) and building on the progress made under the Stand-By Arrangement...

This paper assesses Sri Lanka’s 2002 Article IV Consultation and Final Review Under the Stand-By Arrangement (SBA). Performance under the SBA has been satisfactory, although there are pressures on the budget. All the quantitative performance criteria for end-April 2002 were met and the...

Sri Lanka’s 2005 Article IV Consultation reports that the fiscal deficit exceeded budget targets, and with a significant amount of government financing provided by the central bank, the growth in monetary aggregates increased, contributing to higher inflation. The near-term economic outlook is...

Since the last Article IV Consultation, the Sri Lankan economy has advanced on several fronts. However, the economic effects of the two-decade long civil conflict are yet to be overcome, and many challenges remain. Recently, heightened political uncertainty has constrained the government’s...

KEY ISSUES Context. Macroeconomic performance has generally exceeded expectations. Real GDP grew 7.3 percent for 2013, up from 6.3 percent in 2012. Inflation declined to below 5 percent, and the external current account balance has improved. Private credit growth has been slow, however, a number...

EXECUTIVE SUMMARY Context. Sri Lanka’s economy has navigated recent market turbulence relatively well. Growth has remained solid, inflation is in mid-single digits, and the current account deficit has narrowed. From mid-May, the exchange rate came under pressure as market expectations of...