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1 percent from the 5.2 percent forecasted in its April Development Outlook Report.
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The Asian Development Bank’s growth projection for Sri Lanka for 2005 edged down marginally to 5.1 percent from the 5.2 percent forecasted in its April Development Outlook Report.
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8 percent to 5.5 percent, but the bank cut its inflation forecast to 7.1 percent from 9.0 percent. Inflation forecast for 2005 remains at 12 percent.
The ADB said the Central Bank raising policy rates in May and June helped ease price pressures and bring down CPI inflation (year on year) from 14.1 percent in March to 9.4 percent in June 2005.
The bank however said “Changes in oil product prices have been made but subsidies of about 1 percent of GDP remain, adding to budget strains.”
“While the major risk remains uncertainty over the cease-fire and peace process with the Liberation Tigers of Tamil Eelam (Tamil Tigers), fissures in the Government’s