Sri Lanka economy expands post-war
AFP/File – A Sri Lankan farmer sprays pesticide at his rice farm at Piliyandala on the outskirts of Colombo on December …
– Fri Dec 18, 12:06 pm ET
COLOMBO (AFP) – Sri Lanka's economic growth accelerated at its fastest clip this year after the end of a bloody civil war, boosted by new investment and low interest rates, data released Friday showed.
The economy grew by 4.2 percent during the third quarter to September, double the 2.1 percent growth it posted in the second quarter.
"Peace is a key factor that drove the economy during this quarter," deputy statistics director Nalini Kumarasinghe told reporters, adding that lower interest rates also helped, boosting consumption and investment.
Analysts expect the economy to gain pace, fuelled by reconstruction of the war-battered country's infrastructure, after government forces crushed the Tamil Tiger rebels in May, ending 37 years of ethnic conflict.
But the economy was still feeling the effects of the global financial crisis and a weak monsoon, officials said. Growth was down sharply from the 6.3 percent expansion the economy logged in the same period a year earlier.
Kumarasinghe said central bank policymakers were projecting economic growth for 2009 of 3.5 percent, the same figure as forecast by the International Monetary Fund, after expansion of six percent last year.
For 2010, the central bank is hoping growth will return to six percent.
Sri Lanka's tiny 231-company listed stock exchange is one of the world's top performers as investors bet on long-term acceleration of the economy. The index has gained 96 percent since the conflict ended in May.
"The stock market and hotels sector improved and investment sentiment improved during the quarter," Kumarasinghe said.
Going forward, analysts said they expected economic activity in the war-hit north and east to boost economic expansion.
"We see a pick-up in manufacturing and construction activity, which account for over 20 percent of gross domestic product," said Anushkha Shah, economist at India-based Citigroup.
The island's central bank has cut lending rates five times this year to spur economic activity. Sri Lankan President Mahinda Rajapakse in October slashed lending rates from an average 22 percent to between 12 and 18 percent.
"We also expect an uptrend in tourism to boost economic activity next year," Shah said.
The number of holidaymakers rose more than 20 percent to 44,311 in November from the same month a year earlier, according to the Tourist Board.
The economy grew by an average annual five percent throughout the separatist conflict that claimed tens of thousands of lives as performance was boosted by spending on the war effort.
MAY LANKAWAY PONNA MATI YAKKUNTA ONAY WAR EKKA IWARA UNA GAMAN MA MASA 6n LANKAWA DEVELOP CONUTRY EKKAK WELA, HAMBA WENNA PULUWAN SAHANA OKKOMA HAMBA WELA. BADU MILA ADU WELA, JOLI KARANA.
THOPILA DANNA HUJJAK NA, ECONOMY EKKAK WAR EKKA IWARA UNA GAMAN MASEN HADANNA BA, IT TAKES TIME.
MODA WESA UNP EKKAY RANIL AND SF TA ONNAY MASA 3NEN LANKAWA HADANNA.
EKA THERENNAY NATHI APAY WESA HATTHALATH UNTA KADAY YANAWA.
AFP/File – A Sri Lankan farmer sprays pesticide at his rice farm at Piliyandala on the outskirts of Colombo on December … – Fri Dec 18, 12:06 pm ET
COLOMBO (AFP) – Sri Lanka's economic growth accelerated at its fastest clip this year after the end of a bloody civil war, boosted by new investment and low interest rates, data released Friday showed.
The economy grew by 4.2 percent during the third quarter to September, double the 2.1 percent growth it posted in the second quarter.
"Peace is a key factor that drove the economy during this quarter," deputy statistics director Nalini Kumarasinghe told reporters, adding that lower interest rates also helped, boosting consumption and investment.
Analysts expect the economy to gain pace, fuelled by reconstruction of the war-battered country's infrastructure, after government forces crushed the Tamil Tiger rebels in May, ending 37 years of ethnic conflict.
But the economy was still feeling the effects of the global financial crisis and a weak monsoon, officials said. Growth was down sharply from the 6.3 percent expansion the economy logged in the same period a year earlier.
Kumarasinghe said central bank policymakers were projecting economic growth for 2009 of 3.5 percent, the same figure as forecast by the International Monetary Fund, after expansion of six percent last year.
For 2010, the central bank is hoping growth will return to six percent.
Sri Lanka's tiny 231-company listed stock exchange is one of the world's top performers as investors bet on long-term acceleration of the economy. The index has gained 96 percent since the conflict ended in May.
"The stock market and hotels sector improved and investment sentiment improved during the quarter," Kumarasinghe said.
Going forward, analysts said they expected economic activity in the war-hit north and east to boost economic expansion.
"We see a pick-up in manufacturing and construction activity, which account for over 20 percent of gross domestic product," said Anushkha Shah, economist at India-based Citigroup.
The island's central bank has cut lending rates five times this year to spur economic activity. Sri Lankan President Mahinda Rajapakse in October slashed lending rates from an average 22 percent to between 12 and 18 percent.
"We also expect an uptrend in tourism to boost economic activity next year," Shah said.
The number of holidaymakers rose more than 20 percent to 44,311 in November from the same month a year earlier, according to the Tourist Board.
The economy grew by an average annual five percent throughout the separatist conflict that claimed tens of thousands of lives as performance was boosted by spending on the war effort.
MAY LANKAWAY PONNA MATI YAKKUNTA ONAY WAR EKKA IWARA UNA GAMAN MA MASA 6n LANKAWA DEVELOP CONUTRY EKKAK WELA, HAMBA WENNA PULUWAN SAHANA OKKOMA HAMBA WELA. BADU MILA ADU WELA, JOLI KARANA.
THOPILA DANNA HUJJAK NA, ECONOMY EKKAK WAR EKKA IWARA UNA GAMAN MASEN HADANNA BA, IT TAKES TIME.
MODA WESA UNP EKKAY RANIL AND SF TA ONNAY MASA 3NEN LANKAWA HADANNA.
EKA THERENNAY NATHI APAY WESA HATTHALATH UNTA KADAY YANAWA.
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