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The bank also said monetary management was challenging last year due to economic shocks. Central Bank said the economy grew by a slower 5.4 percent last year and expects similar growth this year. The bank also said monetary management was challenging last year due to economic shocks. "The GDP growth shows the resilience of the economy despite several shocks," says H.
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N. Thenuwara, Economic Research Director, Central Bank.
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"We have exceeded the US$1000 Per Capita Income and we now have a new set of challenges," he says.
The bank estimates the tsunami that devastated the country on December 26, last year, will cut growth by 0.7 percent from levels to 5 .3 percent next year, a clear sign the economy has slowed from the 6 percent achieved in 2003.
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Growth last year was helped by higher consumption, investment and exports but the agriculture sub sector continued to worry policymakers.
"Agriculture sector declined a 0.7 percent due to drought during the early 2004.
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The growth is not sufficient to eliminate poverty or generate employment. We need above 6 percent growth and to do