SL likely to have higher than expected growth in Q1

Colombo,  Sri Lanka’s economy may have a higher than expected growth rate in the first quarter of 2021, a statement issued by the country’s Central Bank said.

“Indicators for several key sectors of the economy point towards a stronger than expected recovery during the quarter,” Xinhua news agency quoted the Central Bank of Sri Lanka (CBSL) statement released on Thursday as saying.

The CBSL said that growth was weakened in the second quarter due to a third wave of the coronavirus pandemic and preventative measures that disturbed economic activity.

“The ongoing vaccination drive throughout the country and the likely removal of mobility restrictions are expected to ease the impact of the current wave of Covid19 on overall economic activity, thereby facilitating a sustained economic recovery towards achieving a GDP growth rate of around 5 per cent in 2021,” the statement said.

The Monetary Board of the Central Bank of Sri Lanka has decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) at 4.5 per cent and 5.5 per cent, respectively, in light of current macroeconomic conditions and expected local and global developments.