Sri Lanka’s growth is projected to strengthen to 3.5 percent in 2020, from 2.7 percent in 2019, as tourist arrivals and related activities gradually recover, says IMF

Sri Lanka’s Growth Is Projected To Strengthen As Tourist Arrivals Recover, Says IMF
Sri Lanka’s Growth Is Projected To Strengthen As Tourist Arrivals Recover, Says IMF

According to International Monetary Fund (IMF)’s Deputy Managing Director Mitsuhiro Furusawa, Sri Lankan Economy is gradually recovering from the impact of the Easter Sunday attacks.

On November 1, the IMF Executive Board completing the Sixth Review of Extended Fund Facility (EFF) said, the growth is projected to strengthen to 3.5 percent in 2020, from 2.7 percent in 2019, as tourist arrivals and related activities gradually recover.

“Sustaining fiscal policy discipline remains critical to strengthen resilience and support growth, as important downside risks remain, amid heightened external and domestic uncertainty,” he said.

He also said, the authorities are taking actions to mitigate the revenue shortfalls caused by the terrorist attacks and preserve the hard-won gains made under the program.

He opined that sustained efforts to mobilize revenues will be needed in 2020 to place public debt on a downward path, while preserving space for critical social and Investment spending.

The statement further added that the new fiscal rule framework and the establishment of an independent public debt Management agency over the medium term will help anchor public debt sustainability.