ADB praises Sri Lankan economy”s resilience

Colombo, Apr 6 (PTI) A day after the International Monetary Fund”s (IMF) endorsement of Sri Lanka”s economy, the Asian Development Bank (ADB) today praised its resilience.
“The Sri Lankan economy bounced back strongly in 2010, reflecting post civil war optimism and global recovery,” a statement said.
The ADB says Sri Lanka is reaping the benefits from the end of the civil war.
The business environment has seen improvement, while agriculture recorded strong growth.
The revival of tourism with 46 per cent growth, as well as freight and port-related activities, contributed to the growth momentum.
The investor sentiment was strengthened by the approval of the IMF”s standby facility.
The IMF in July last year approved a USD 2.6 billion dollar facility, with just two tranches left to be released.
Although foreign direct investment in the Sri Lankan economy had strengthened to an estimated USD 500 million, it needs to improve from the current level of 1 per cent of the island”s GDP.
“To consolidate its position as a middle income country, Sri Lanka needs to continue to improve its economic infrastructure,” ADB Country Director Richard Vokes said. PTI CORR ARV

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