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Rapid Growth:
16 Jul 2013 17:17:48
By Jithendra Antonio
Sri Lanka’s Economic Growth continue taking over the region – ADB


Jul 16, 2013 (SLBO) - In South Asia, Sri Lanka continues to grow strongly while other parts of the region will see softer than anticipated growth, the recent Economic Outlook by Asian Development Bank (ADB) notes.

Whilst South Asia is paced to grow by 5.6% in 2013 and 6.2% in 2014, ADB in its latest Development Outlook for Asia published in July notes that Sri Lankan economy is forecast to grow by 6.8% in 2013 on the back of a strong performance in the first quarter of the year.

The recent publication of ADB also note that Sri Lanka’s healthy growth in 2013 and acceleration to 7.2% in 2014 will be supported by further monetary easing and improved electricity generation that will power growth in domestic industry.
It also notes that by contrast, Afghanistan, Bangladesh, Nepal, and Pakistan are expected to report softer growth in 2013 than in 2012, as some of these countries face political transitions that could hamper economic policy making. ¬
The Report notes further South Asia sub-region is expected to expand by 5.6% in 2013 marginally less than the Asiain Development Outlook (ADO) 2013 projection of 5.7%) and pick up momentum to post 6.2% growth in 2014.

Global Finance too ranks Lanka as a hot destination

Meanwhile Global Finance one of the leading financial publications in the world had recently ranked Sri Lanka as a 'Hot' destination where the conditions are right for growth.
Accordingly the Global Finance Citi Emerging Markets 2013 Index published in May 2013 notes that Sri Lanka is one of the 'Hot' destinations and that country's GDP had risen by a nearly 6.7% and stands at nearly US $ 3,104 per head (Per Capita GDP). According to IMF,UNCTAD and various other global economic resources the index also had reported 37.19% Foreign Direct Investments (FDI) downtrend in 2011 compared to a year ago whilst the realized FDI in 2011 stands at US $ 300 million.

The Global Finance Citi Emerging Markets 2013 Index also highlights that Sri Lanka's Competitiveness Score is 4.19 out of 5 and that and the Corruption Index is nearly 40 out of 100 according to Transparency International whilst country is ranked among 81st position in 'Ease of Doing Business List.'
Global Finance in its publication also highlights that Emerging Market countries are likely to evolve along a path very different from that followed by the current developed economies, given that rapid adoption and impact of new technologies. It also notes that companies are working constructively to identify opportunities and build alliances with globalizing emerging market companies that have a proven track record and the local knowhow to succeed domestically in the growth markets.

However ADB notes that Southeast Asia’s economic growth was generally solid in the first quarter of 2013 and that with softer oil prices and relatively stable food prices, inflation in developing Asia is now forecast to dip to 3.5% in 2013.