The International Monetary Fund (IMF) has said Sri Lanka’s economy is
gradually recovering after Easter Sunday terrorist attacks last year with GDP
growth projected at 3.7 percent in 2020.
An IMF staff mission to Sri Lanka estimated the real GDP growth at 2.6
percent last year but expected the GDP to bounce back this year on the back of
recovery in tourism.
Renewing fiscal consolidation, essential for
A staff team from the IMF visited Colombo from January 29 to meet with
the new administration and discuss its policy agenda. The team noted that
renewed efforts to advance fiscal consolidation will be essential for
macroeconomic stability given risks to debt sustainability and large
refinancing needs over the medium term.
The mission concluded that ambitious structural and institutional
reforms are needed to anchor policy priorities, bolster competitiveness and
foster inclusive growth in Sri Lanka. It said the government should move ahead
with growth-enhancing structural reforms to fully harness Sri Lanka’s economic
potential and foster greater social inclusion.
The team welcomed the authorities’ plans to enhance the efficiency of
state-owned enterprises, enabling them to operate on a sound commercial basis
adding these plans would need to be supported by a visible commitment to
strengthen governance and transparency.