"Things are on the upside. The Sri Lankan economy is definitely showing signs of bottoming out," IMF mission chief Brian Aitken said.
"We expect some strength in exports and a rise in imports to reflect a higher demand. Remittances have been very strong. We have a positive outlook - a cautiously positive outlook"
Sri Lanka has met the key foreign reserve target in the program defined as net international reserves, and a budget target of 7.0 percent gross domestic product remained "ambitious" though revenue is picking up, he said.
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The target is expressed in the program by limiting domestic borrowing.
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Aitken said a 500 million US dollar Euro bond scheduled for next month was a positive development.
A smaller deficit and foreign borrowings reduce the need for borrowing from local markets, allowing the private sector to use savings of the people to generate