The Central Bank is optimistic the economy will leap frog and can add another 4 percent growth, if the peace initiatives continue.
Central Bank governor A S Jayawardena said the bank is looking at an average 6.
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5 percent GDP growth over the next four years, up from about an expected 3.
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5 percent last year. rn
rnldblquote We revised our forecasts about two-weeks ago and we expect the economy to grow by 5.5 percent this year,
dblquote Jayawardene told journalists on Tuesday.
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rn
rnHe said countries coming out of a war situation have notched an 8 percent to 10 percent growth in the long run. rn
rn"We are aiming for the same. With multilateral and bilateral donors backing us with concessionary aid, we expect economic activity to pick up and foreign investment to increase
dblquote , Jayawardena said.
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rn
rnLast Friday, the International Monetary Fund approved US$ 567 mn under its concessionary window, to prop up Sri Lankas reserves.rn
rnIMF assistance will be spread over a three-year period in seven t