Sri Lanka growth to pick up to 6.8-pct in 2013: World Bank

Jan 16, 2013 (LBO) - Sri Lanka's economic growth will pick up to 6.8 percent in 2013 helped renewed external demand, better agriculture output, the World Bank said in a report on global economic prospects. Energy subsidies were also high in India. India's rupee weakened over the past year amid central bank intervention.

Large volumes of resources are busted on unproductive energy subsidies in South Asia.

"Despite efforts at consolidation, fiscal deficits are 6 percent or higher in Pakistan and Sri Lanka, and above 4 percent in Bangladesh.

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Subsidies, mainly for fuel and to a lesser extent for food, contribute to the overall deficits," the report sid.

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"[S]subsidies account for over 2 percent of GDP in India and Pakistan, and over 3.5 percent of GDP in Bangladesh, according to recent World Bank and IMF estimates.

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India had raised energy prices in the second half of 2012 and also started to scheme rationing of subsidized cooking gas.

"Headline inflation exceeds 7 percent in Pakistan and Bangladesh, and remains close to 10 percent in India, Nepal and Sri Lankaâ€” significantly higher than the average for developing countries," the report said.

Update Sri Lanka's economic