Sri Lanka’s economic performance will continue to be constrained due to weak global demand and uncertainty of Sri Lanka’s policy in 2016 concluded the Asian Development Bank’s annual economic report.
The Asian Development Outlook 2016 (ADO) report found that fiscal reform to deal with the build up of excessive debt was much needed in Sri Lanka.
On growth and the widening budget deficit, the report said,
“The Growth was marginally lower in 2015 while the current account deficit improved slightly and inflation moderated. Meanwhile, the budget deficit widened and foreign exchange reserves dropped sharply. The government twill have to work to realign fiscal policy toward putting the country on a high and sustainable growth track.”
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