Sri Lanka’s quarterly economic growth in the third quarter eased to  nearly a three-year low of 4.8 per cent from a year earlier, slowing  from 6.4 per cent in the second quarter, a government data showed. It is the lowest quarterly rate of expansion in the island nation since the fourth quarter of 2009, data showed. The  agricultural sector contracted 0.5 per cent compared with 9.1 per cent  growth in the previous quarter, while the services sector grew slightly  faster at 4.6 per cent from 4.5 per cent previously, data from the  Department of Census and Statistics showed. The industrial sector grew 7.3 per cent in the third quarter, down from 9.5 per cent in the second quarter. Sri  Lanka’s central bank has revised the island nation’s 2012 economic  growth target to 6.5 per cent from an earlier 6.8 per cent due to its  tight monetary and fiscal policies, the bank’s deputy governor said. Data  released showed economic growth slowed to nearly a three-year low of  4.8 per cent in the third quarter, from 6.4 per cent year-on-year growth  in the second quarter. Sri Lanka implemented sweeping policy measures  to avert a balance-of-payments crisis in 2012 by raising key policy  rates twice since February and floating the rupee currency. The  central bank also kept a lid on credit growth while the government  raised fuel and electricity prices as part of an effort to contain the  fiscal deficit. “As a result of those tightening measures and as  well as some of the supply side factors such as drought, the third  quarter is the most affected the quarter,” Nandalal Weerasinghe, deputy  central bank governor, told Reuters in an interview. “As a result, for  the whole year, we have revised down the growth to 6.5 per cent from the  earlier 6.8 per cent. The global economy is also recovering which means  our external sector could rebound.” He said the country would  see a $100 million balance of payments surplus this year compared to a  deficit of over $1 billion in 2011, and the current account deficit  would be reduced to 5 per cent of the GDP this year compared to 8 per  cent in 2011. The central bank last week surprised markets by  cutting key policy rates for the first time in nearly two years in order  to boost economic growth. Sri Lanka’s quarterly economic growth in the third quarter eased to  nearly a three-year low of 4.8 per cent from a year earlier, slowing  from 6.4 per cent in the second quarter, a government data showed. It is the lowest quarterly rate of expansion in the island nation since the fourth quarter of 2009, data showed. The  agricultural sector contracted 0.5 per cent compared with 9.1 per cent  growth in the previous quarter, while the services sector grew slightly  faster at 4.6 per cent from 4.5 per cent previously, data from the  Department of Census and Statistics showed. The industrial sector grew 7.3 per cent in the third quarter, down from 9.5 per cent in the second quarter. Sri  Lanka’s central bank has revised the island nation’s 2012 economic  growth target to 6.5 per cent from an earlier 6.8 per cent due to its  tight monetary and fiscal policies, the bank’s deputy governor said. Data  released showed economic growth slowed to nearly a three-year low of  4.8 per cent in the third quarter, from 6.4 per cent year-on-year growth  in the second quarter. Sri Lanka implemented sweeping policy measures  to avert a balance-of-payments crisis in 2012 by raising key policy  rates twice since February and floating the rupee currency. The  central bank also kept a lid on credit growth while the government  raised fuel and electricity prices as part of an effort to contain the  fiscal deficit. “As a result of those tightening measures and as  well as some of the supply side factors such as drought, the third  quarter is the most affected the quarter,” Nandalal Weerasinghe, deputy  central bank governor, told Reuters in an interview. “As a result, for  the whole year, we have revised down the growth to 6.5 per cent from the  earlier 6.8 per cent. The global economy is also recovering which means  our external sector could rebound.” He said the country would  see a $100 million balance of payments surplus this year compared to a  deficit of over $1 billion in 2011, and the current account deficit  would be reduced to 5 per cent of the GDP this year compared to 8 per  cent in 2011. The central bank last week surprised markets by  cutting key policy rates for the first time in nearly two years in order  to boost economic growth. (Reuters)]]>

LEAVE A REPLY

Please enter your comment!
Please enter your name here