RSS   Newsletter   Contact   Advertise with us

Natural disasters affect Sri Lankan economy

Staff Writer | October 10, 2017
Sri Lanka's economy is weakening due to frequent natural disasters, with a predicted increase in poverty, according to the World Bank's half-yearly report Focus on Southern Asia.
Sri Lanka disaster
Asia   Focus on Southern Asia
Focus on Sothern Asia says that despite the high budgetary deficit and high public debt, Sri Lanka's finances and reserves improved, and the economy will grow 4.6 percent in 2017 and 5.0 percent in the next few years.

The benefit from low oil prices resulted in more imports of that product and food, due to the drought and the impact of agricultural exports, with an increase of the cost of tea, said the report.

The Sri Lankan government goes slow on a reform program aimed at improving competitiveness, public finances and governance.

The implementation of those changes, together with the program by the International Monetary Fund, will increase confidence and reform the tax system to achieve better tax consolidation.

Focus on Southern Asia added that Sri Lanka will have to adopt political measures to align expenditures and priorities, and mitigate the impact of the reforms on the vulnerable population to face economic challenges.