Sri Lanka’s economy to bounce back in 2017 and accelerate in 2018: IMF

July 24, 2017 (LBO) - The International Monetary Fund (IMF) forecasts Sri Lankan economy to rebound in 2017 and accelerate in 2018, despite the lower than expected 3.8 percent GDP growth registered in the first quarter of 2017. The IMF has attributed the slow growth at the early part of the year to the lingering effect of drought which significantly contracted agricultural output. "The Fund-supported program is back on track with the second review just completed," Ranil Salgado, chief of the Regional Studies Division, Asia and Pacific Department of the IMF told Lanka Business Online. "The program’s objective is to promote macroeconomic stability while strengthening Sri Lanka’s external resilience in a more challenging global economy." the IMF says it also expects the new Inland Revenue Act to be consistent with the IMF staff recommendations and would support fiscal consolidation by making tax system more efficient and equitable. The current Extended Fund Facility (EFF) of IMF program rests on several pillars such as promote fiscal consolidation to remedy high deficit and public debt including broadening the tax base, strengthening management of public expenditure and strengthening Sri Lanka’s external resilience.