The Sri Lankan economy has received a strong endorsement from the IMF. The resident representative for the International Monetary Fund in Sri Lanka, Dr. Koshy Mathai said the islands economic fundamental are shaping up well. “The external performance is positive the reserves position and exchange rate are stable. Overall the external sector is strong, he said.
According to Dr. Mathai inflation and monetary conditions are at satisfactory levels and an economic growth rate of seven percent can be expected in 2011.
As noted by Dr. Mathai, significant improvements can be seen in the Sri Lankan fiscal situation. The reforms to the tax system and the BOI will assist in increasing foreign direct investment to the Sri Lankan economy, he said.
Sri Lanka is focusing on improving the business environment and the financial sector to increase growth. There is new economic situation in Sri Lanka which is witnessing a rapid growth rate. Sri Lanka needs to focus on its natural strengths he said.
Asia is expected to take up economic centre stage. Economies in China and India are developing strongly and Sri Lanka needs to familiarise towards more regional integration. Dr. Mathai noted that the Sri Lankan economy is bound to increase its growth rate in the comings years.