Economy grows at 7% in 2Q

10 September 2013 07:13 am - 1 - {{hitsCtrl.values.hits}}

A A A

The Sri Lankan economy grew 7 percent in the second quarter (2Q) accelerating from the 6 percent growth reported in the first quarter of 2013, Central Bank Governor Ajith Nivard Cabraal said in an interview with Bloomberg in Hong Kong.

“Our second quarter figures have just come out and we had a 7 percent growth in the second quarter, which shows that we are well on target to achieve the 7.5 percent growth for this year,” Cabraal said.

The 2Q GDP growth however is in contrast to the view of many analysts who observed a slowdown in the Sri Lankan economy in the second quarter continuing to the balance part of the year as well.

The economy grew by 6.4 percent in the corresponding quarter in 2012.

Governor Cabraal confided that the current trend in the economic growth would provide a platform to achieve the 8 percent growth projected by the Central Bank for 2014.

Meanwhile, despite the current volatility due to the fears of Fed stimulus tapering, Cabraal said the Sri Lankan rupee should remain at the present levels against the dollar. “If the inflation behaves the way we wanted that to (and so far it has worked in that way), the rupee should also be at the levels we are presently seeing it,” Cabraal said.

Declining to give a projection on the rupee he said, “It’s very difficult for us to predict what could take place because our neighbouring countries as well as our trading partners are also undergoing serious changes.”

The Sri Lankan rupee had its worst fall on August 28 to Rs.135 to the US dollar. However, Cabraal attributed it to a temporary aberration.

Since June 7, the Sri Lankan rupee has fallen 5 percent, partly due to foreigners pulling out of the Sri Lankan treasury bonds. Sri Lanka’s spot rupee at yesterday’s open was Rs.132.91 to a dollar.

Last month the Central Bank intervened in the forex markets helping to strengthen the rupee.

Cabraal further said the currency volatility was much less in Sri Lanka relative to other countries because the country did not invite a lot of hot money during the past one year.

“Most of the investments to Sri Lanka came in the preQuantitative Easing era. As a result, we are pretty confident of maintaining those levels of investments without any major shift in the investments in the country,” he confided.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 1

fazlyfazly Wednesday, 11 September 2013 08:25 AM

which corner of the Island can this growth be found or seen or alleast felt !

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Economy grows at 7% in 2Q

Comments - 1

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

Street food vendor arrested for verbally harassing foreigner

Uma Oya Development Project inaugurated

Sri Lankan among NASA’s new crew for next simulated Mars journey

Racing event tragedy leaves seven dead including eight-year-old child

Former MP Palitha Thewarapperuma dies from electrocution

Ranil Wickremesinghe caravan moves on despite barking dogs

MIRROR CRICKET

Is Chamari Athapaththu Sri Lanka’s greatest cricketer ever?

Athapaththu back atop ICC Women’s ODI Batting Rankings

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

TODAY'S HEADLINES

No footboard riding allowed, no liability for accidents: Railways Department

Six patients claim Rs.600 million from Keheliya and others for permanent loss of sight

SLPP, UNP initiates action for forming broad alliance

Here is the way!

Pakistan lose key players for last two T20Is against New Zealand

Sri Lanka secures third spot in South Asian Kurash Championship 2024

Athapaththu back atop ICC Women’s ODI Batting Rankings

Army forms committee to probe Diyatalawa Fox Hill Supercross accident