The International Monetary Fund ( IMF) has downgraded Sri Lanka’s growth to 6.7 percent for 2012 but the country has still managed to stay ahead of the rest of Asia, the latest report showed here on Wednesday, Xinhua reports.
The 6.7 percent projection published in the IMF World Economic Outlook is marginally behind 6.8 percent expected by the Sri Lanka Central Bank. In 2010 and 2011 Sri Lanka posted a record 8 percent and 8.3 percent growth respectively.
At the start of 2012, the Central Bank forecast growth at an ambitious 8 percent but was later forced to downgrade it twice, eventually putting the number at 6.8 percent.
The IMF report said that Sri Lanka’s growth for 2013 would also likely remain at the 6.7 percent mark.
Sri Lanka’s inflation is also expected to hit double digits of 10.1 percent at the end of this year for the first time since 2010.
However, Sri Lanka remains ahead of many other Asian countries including neighboring India whose growth has been forecast at 4.9 percent in the report.
The IMF cut its forecast for 2012 global growth from 3.5 percent to 3.3 percent the slowest pace since the global recession reportedly ended in 2009. The IMF’s expectations for economic expansion in 2013 are cut from 3.9 percent to 3.6 percent on expectations of sluggish growth in the U.S and Eurozone.
The spillover effects are likely to affect many developing nations including Sri Lanka, the report said.