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Sri Lanka 2012 GDP growth lowered to 6.8 pct: CB Governor

September 27, 2012 (LBO) - Sri Lanka's economic growth forecast for 2012 has been lowered to 6.
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8 percent from an earlier7.2 percent, Central Bank governor Ajith Nivard Cabral said He said expected growth in some sectors has been revised up and some down.



Sri Lanka is facing an external slowdown which has slowed exports and also a drought.

Cabral said there is a slight dip in agriculture due to the drought.

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The drought has hurt hydro power generation which tends reduce domestic value creation.

SL faced balance of payment trouble in 2011 partly due to credit funded energy subsidies which required higher interest rates to stabilize the economy.

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The rupee also fell but market interest rates have been easing in recent weeks.



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