Sri Lanka to grow over 6 pct in 2010
nuanho nuanho
Fri Jan 1, 2010 12:03pm IST
By Shihar Aneez
COLOMBO, Jan 1 (Reuters) - Sri Lanka's economy should grow by more
than 6 percent in 2010 as the end of the island's long civil war
boosts investor confidence, the central bank governor said on Friday.
"This year will a year of consolidation and of growth. The take off
points would be tourism, transportation, fisheries, agriculture, and
services. They will see clear growth potential." Governor Ajith Nivard
Cabraal told Reuters in an interview.
"We think 6-percent-plus growth is very manageable."
The central bank and the International Monetary Fund have predicted
the economy would grow 3.5 percent in 2009, its slowest pace in eight
years.
The central bank cut policy rates six times to multi-year lows in
2009, hoping to encourage more private sector borrowing and spur the
economy.
But now Cabraal said the central bank would take a cautious approach
in relaxing key policy rates further.
"At the moment, we don't think its right time (to relax). We think
that we have done sufficient for the reaction to come from the
market."
Cabraal also said the central bank would aim to keep inflation
contained at around 5 percent this year even as economic growth picks
up.
http://in.reuters.com/article/domesticNews/idINSGE5BT01U20100101