After weakening in 1999, GDP growth has increased strongly in 2000, led by exports. The savings-investment gap has increased from 13⁄4 percent of GDP in 1998 to 31⁄4 percent of GDP in 1999, widening further to 7 percent of GDP in 2000. Agriculture has grown by 41⁄2 percent in 1999,...

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 Selected Issues paper focuses on the fiscal position of Sri Lanka. The standard analysis shows that, prior to the adjustment announced in the 2002 budget, fiscal policy was clearly unsustainable, leading to a rising debt-to-GDP ratio. The paper looks at external debt and complements the...

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...

This report is a summary assessment of Sri Lanka’s data dissemination practices against the IMF’s Special Data Dissemination Standard (SDDS), complemented by an in-depth assessment of the elements of data quality that underlie the national accounts, prices, government finance, monetary, and...

In concluding the 1999 Article IV Consultation with Sri Lanka on October 13, 1999, Executive Directors had stressed the need to address the longstanding economic problems that are impeding Sri Lanka’s growth. Macroeconomic management and structural reform have been complicated by a difficult...

This paper presents an update to the Financial System Stability Assessment on Sri Lanka. The paper discusses that despite a challenging macroeconomic environment characterized by a high fiscal deficit, inflationary pressures, and a widening current account, near-term risks to the financial...

The staff report for the 2007 Article IV Consultation on Sri Lanka highlights economic growth development and performance. Rising inflation, a high current account deficit, and low unemployment rate indicate that the economy may be operating at full capacity. High stock of public debt, rising...

This Selected Issues paper on Sri Lanka underlies the dynamics of growth and external competitiveness. The slowdown in the contribution of sectors that are labor intensive, together with faster growth in sectors that are capital intensive and have higher productivity levels, resulted in total...

This Selected Issues paper on Sri Lanka reviews several issues that highlight both Sri Lanka’s accomplishments and their policy constraints amidst a protracted period of civil conflict and political instability. High intermediation costs have held back development of the financial sector and...