Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post

Latest topics

» MARKET CRASH - GUARANTEED
by DS Wijesinghe Today at 10:58 am

» Govt has failed to set up Export Import(EXIM) Bank as promised in 2015 Nov Budget
by ruwan326 Yesterday at 7:37 pm

» SRI LANKA @ 2020
by samaritan Sat Oct 20, 2018 2:35 pm

» Financial Reports Q-3 2018
by ruwan326 Fri Oct 19, 2018 7:52 pm

» Summary of Key Announcements during the week
by ruwan326 Fri Oct 19, 2018 7:34 pm

» Dealing by directors
by ruwan326 Fri Oct 19, 2018 7:30 pm

» CSE WEEKLY
by ruwan326 Fri Oct 19, 2018 7:28 pm

» Daily Foreign Transactions
by ruwan326 Fri Oct 19, 2018 7:24 pm

» THE MAN WHO KILLED THE SRI LANKAN STOCKMARKET!
by ruwan326 Fri Oct 19, 2018 12:41 pm

» We Have Fresh Cut Bank Guarantee For Lease and sale (BG/SBLC - Tura
by king12 Fri Oct 19, 2018 7:32 am

» ඉන්ධන මිල සූත්‍රය මෙන්න
by ruwan326 Thu Oct 18, 2018 7:34 pm

» Daily Stock Market Update
by Insights Equity Thu Oct 18, 2018 5:53 pm

» Dreams of big profits as marijuana becomes legal in Canada
by janith123 Thu Oct 18, 2018 3:07 pm

» $ 1 b from China Development Bank in Sri Lanka today
by ruwan326 Thu Oct 18, 2018 10:20 am

» US Share Market Crash Seems to Good for Sri Lankan/Asian Share Market and Currencies
by Yahapalanaya Thu Oct 18, 2018 9:59 am

» Banking sector profits seen losing steam ahead of 3Q earnings season
by Yahapalanaya Thu Oct 18, 2018 9:50 am

» Dr. Ali Gulamhusein resigns from People’s Leasing board, amid litigation/floundering listed companies
by ruwan326 Thu Oct 18, 2018 7:24 am

» Sri Lanka to revoke rogue bikini ban
by ruwan326 Thu Oct 18, 2018 6:58 am

» ORIENT FINANCE PLC - RATING REVIEW
by ruwan326 Wed Oct 17, 2018 8:43 pm

» EPF needs governance overhaul to invest in Sri Lanka stock market
by janith123 Wed Oct 17, 2018 4:58 pm

» MD behave like ANIMAL
by janith123 Tue Oct 16, 2018 4:48 pm

» Sri Lanka may be one of few countries who takes ridiculous tax
by soileconomy Tue Oct 16, 2018 7:50 am

» ALHP WILL MOVE UP SOON
by ruwan326 Tue Oct 16, 2018 7:27 am

» Stock Broker Companies for sale
by janith123 Mon Oct 15, 2018 9:26 pm

» Fresh push to woo UK investors to SL
by ruwan326 Mon Oct 15, 2018 8:03 pm

» Central Bank will intervene if rupee moves on speculation – official
by Yahapalanaya Mon Oct 15, 2018 6:18 pm

» FUTURE WINNING STOCKS AT BOTTOM LEVEL
by Yahapalanaya Mon Oct 15, 2018 6:15 pm

» Nimal returns to stock market
by sapumal Mon Oct 15, 2018 4:53 pm

» Stock price decline leaves John Keells (JKH) vulnerable to a takeover by Sri Lanka’s oligarchs
by ruwan326 Mon Oct 15, 2018 8:08 am

» අනං## මනං ##
by ruwan326 Sat Oct 13, 2018 9:45 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Sri Lanka economy to grow 4.0-pct in 2018

Sri Lanka economy to grow 4.0-pct in 2018

Go down  Message [Page 1 of 1]

1 Sri Lanka economy to grow 4.0-pct in 2018 on Fri Aug 03, 2018 8:02 pm

ruwan326

avatar
Vice President - Equity Analytics
Vice President - Equity Analytics
Sri Lanka's economy may grow may be about 4.0 percent in 2018, Central Bank Governor Indrajit Coomaraswamy said, lowering an earlier forecast of around 4.0-4.5 percent.

 "It’s unlikely that growth is going to be more than 4 percent this year," he told reporters Friday after holding  policy rates.

The economy was expected to grow by about 3.4 percent in the first half of 2018, and will have to grow by 4.6 percent during the latter half of the year to reach 4.0 percent.

A recovery in the agriculture sector and related industries will help growth.

Coomaraswamy said there was a negative output gap, and real interest rates were also high, with inflation in mid single digits indicating space for a policy rate cut, but major central banks were raising rates and Sri Lanka may face capital outflows, prompting the monetary authority to hold rates.

The central bank triggered a minor run on the rupee by printing large volumes of money in March and April to enforce a rate cut, but conditions are now stabilizing, after short term rates rose.

Analysts have pointed out that the biggest problem in Sri Lanka is the tendency of the central bank's domestic operations department to inject cash into the banking system though sudden 'quantity easing' style exercises, which tends to de-stabilize the credit system and the currency peg.

Services and industrial sectors are also expected to expand, the Central Bank said in its monetary policy statement Firday.

"The economy is projected to reach its potential over the medium term benefiting from a competitive flexible exchange rate, a low inflation environment and a stronger policy framework to support exports and investment, amidst continued fiscal consolidation." 

Last year growth fell to 3.2 percent, amid a credit slowdown and foreign reserve collections.

Coomaraswamy said there was a 'squeeze' on the economy from both monetary and fiscal tightening.
Sri Lanka is also expected to miss an International Monetary Fund reserve target for mid 2018, but will apply for a waiver.

The Central Bank collected over billion dollars of reserves in 2017, a practice which tends to dampen credit and growth, in general.

Analysts have pointed out that there is a credit recovery 18 months after the peak of the most recent balance of payments crisis. In the 2011/2012 crisis it took 26 months for credit to recover.

However this year there is an added dampener of a permanently depreciating currency which tends to kill domestic purchasing power and also generate political unrest.
Earlier this year, the Central Bank had expected growth to be around 4-4.5 percent. (COLOMBO, 3 August, 2018)

https://economynext.com/Sri_Lanka_economy_to_grow_4.0_pct_in_2018-3-11430.html

2 Re: Sri Lanka economy to grow 4.0-pct in 2018 on Fri Aug 03, 2018 9:05 pm

DS Wijesinghe


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Extremely disappointing. 

Even Bhutan is forecasted to grow by 7.1% and Bangladesh by 7%.

Maldives with all their political uncertainity by 5%.

India is expected to grow by 7.4% and Nepal by 5%

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum