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Sri Lanka economy to grow 6.25-pct in 2013: IMF

Feb 13, 2013 (LBO) - Sri Lanka's economy is expected to grow 6.25 percent in 2013 after dipping to 6.
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0 percent in 2013, with high inflation reducing space for monetary easing, the International Monetary Fund said.
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"The recovery will be constrained by high inflation which limits room for near term monetary easing," IMF mission team leader John Nelmes said.

But the economy will be helped by a continued recovery in main trading partners, the US and EU, he said.

Last year external demand was weak, and a drought also hit the economy, he said.

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The IMF said it welcomed a commitment by the authorities to keep the budget deficit at 5.75 percent of gross domestic product.

In 2012 tax revenues fell below 11.


25 percent of GDP with imports slowing and tax exemptions eating into revenue.

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