The Investor Sentiment - Equity and investments forum for Sri Lankans
Search
 
 

Display results as :
 


Rechercher Advanced Search

Latest topics
» Thread for News on Local and Foreign Politics
Today at 2:09 pm by The Invisible

» බඩගිනී
Today at 9:20 am by Ethical Trader

» Thread for News on International Markets
Yesterday at 11:21 am by The Invisible

» Thread for News on CSE and SL Economy
Yesterday at 11:19 am by The Invisible

» අනං මනං! #/+?.<>
Sun Dec 09, 2018 11:19 am by lanka

»  Rajgama heroes !
Sun Dec 09, 2018 9:43 am by කිත්සිරි ද සිල්වා

» BFN - Orient Finance
Fri Dec 07, 2018 6:05 pm by nihal123

» BOPL.N0000 (Bogawantalawa Tea Estates PLC)
Fri Dec 07, 2018 7:35 am by The Invisible

» Sri Lanka economic slowdown trims company profits, bank earnings grow
Thu Dec 06, 2018 3:04 pm by nihal123

» JINS.N0000 ( Janashakthi Insurance PLC)
Thu Dec 06, 2018 10:05 am by The Invisible

» Better Than Bitcoin
Thu Dec 06, 2018 9:42 am by කිත්සිරි ද සිල්වා

» AAIC.N0000
Thu Dec 06, 2018 8:19 am by serene

» CFVF - First Capital
Wed Dec 05, 2018 1:39 pm by The Invisible

» Hutchison, Etisalat complete mobile networks merger in Sri Lanka
Wed Dec 05, 2018 9:30 am by The Invisible

» Oil prices surge more than 5-pct
Mon Dec 03, 2018 1:53 pm by Ethical Trader

» Dividend Announcement
Mon Dec 03, 2018 11:50 am by lanka

» Trading Journal
Mon Dec 03, 2018 11:33 am by lanka

» CCS.N0000 ( Ceylon Cold Stores)
Mon Dec 03, 2018 10:03 am by The Invisible

» HAYC - Haycarb
Sun Dec 02, 2018 3:04 pm by xmart

» In the Meantime, Within Our Shores !
Sat Dec 01, 2018 4:36 pm by කිත්සිරි ද සිල්වා

» LGL Laugfs Gas
Fri Nov 30, 2018 9:43 am by The Invisible

» Oil prices gain as investors eye Fed relief on interest rates
Fri Nov 30, 2018 9:41 am by The Invisible

» ලැයිස්තුගත සමාගම් 8 ක් කොටස් ගනුදෙනු තහනම් වීමේ අවදානමක
Thu Nov 29, 2018 11:34 am by nihal123

» අපි තනිකර ලෝකය දිව යන්නේ
Thu Nov 29, 2018 11:32 am by කිත්සිරි ද සිල්වා

» NDB.N0000 (NATIONAL DEVELOPMENT BANK PLC)
Thu Nov 29, 2018 10:32 am by The Invisible

» Orient Finance PLC--(Share_Valuation_Report)
Thu Nov 29, 2018 7:17 am by yellow knife

» කිඹුලා
Mon Nov 26, 2018 7:20 am by Lalinda

» Sandos' Vs Creators'
Sun Nov 25, 2018 1:17 pm by කිත්සිරි ද සිල්වා

» Tourists Arrival
Sat Nov 24, 2018 10:07 am by කිත්සිරි ද සිල්වා

» බිරිඳ
Fri Nov 23, 2018 11:49 am by Ethical Trader

» ගෙයක් හදන්නද ඉන්නේ
Fri Nov 23, 2018 5:55 am by Brave Heart

» --- සමෝසා වෙළෙන්දා -------
Fri Nov 23, 2018 5:51 am by Brave Heart

» විකුණුම්කරු
Sun Nov 18, 2018 2:10 pm by Ethical Trader

» Real Estate Market in Sri Lanka- A booming Industry or a Bubble?
Sun Nov 18, 2018 12:00 am by xmart

» Will YOU VOTE for ME if I run for SL PRESIDENCY?
Sat Nov 17, 2018 11:43 am by CK

» *කොට්ටේ තරණය කිරීම*
Fri Nov 16, 2018 6:25 pm by Ethical Trader

» COMB.N0000 ( COMMERCIAL BANK OF CEYLON PLC )
Wed Nov 14, 2018 9:20 pm by pjrngroup

» DIPD.N0000 (Dipped Products)
Wed Nov 14, 2018 7:18 am by The Invisible

» SAMP.N0000 (SAMPATH BANK PLC)
Wed Nov 14, 2018 7:16 am by The Invisible

» TAFL - Three Acre Farms
Wed Nov 14, 2018 7:14 am by The Invisible

» RCL - Royal Ceramics
Wed Nov 14, 2018 7:12 am by The Invisible

» HAYL.N0000 Hayleys PLC
Wed Nov 14, 2018 7:08 am by The Invisible

» How to trade Stock profitably?
Tue Nov 13, 2018 11:55 am by indramal

» What are investing methods in Sri Lanka?
Tue Nov 13, 2018 6:39 am by indramal

» Thread for General News Local/Foreign
Mon Nov 12, 2018 7:57 am by serene

» Anybody invest New York or Landon Stock Exchange?
Sat Nov 10, 2018 8:53 am by කිත්සිරි ද සිල්වා

» JKH.N0000
Fri Nov 09, 2018 10:49 am by ruwan326

» WATA - Watawala
Fri Nov 09, 2018 10:22 am by The Invisible

» Asian markets rally as investors see positive in US gridlock
Fri Nov 09, 2018 8:02 am by serene

» CSE RISE , RIDING ETHICALLY
Wed Nov 07, 2018 5:53 am by pjrngroup

December 2018
SunMonTueWedThuFriSat
      1
2345678
9101112131415
16171819202122
23242526272829
3031     

Calendar Calendar

Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

Sri Lanka economy to rebound, delaying reforms pose risks: World Bank

Go down

Sri Lanka economy to rebound, delaying reforms pose risks: World Bank

Post by The Invisible on Tue Apr 17, 2018 7:28 am

ECONOMYNEXT - The World Bank says Sri Lanka's economy will rebound in 2018 with annual growth averaging 4.5 percent in the medium term, driven by private consumption and investment but warned against delaying reforms.

"A further slowdown in reform implementation, in a challenging political environment, remains the key risk, the World Bank said in a report, 'South Asia Economic Focus Spring 2018: Jobless Growth?'

"The impending election cycle elevates this risk.

"The economy will rebound in 2018 and the outlook remains favourable, provided the government is committed to the reform agenda of improving competitiveness, governance and public financial management.

"Together with the IMF programme, these reforms will add to confidence and support fiscal consolidation efforts," it said.

Inflation is expected to stabilize at mid-single digit levels this year.

However, the upward trend in oil prices may exert some upward pressure. Sri Lanka's rupee collapsed in 2015 and 2016 after the central bank printed money, from 131 to 150 to the US dollar, but oil prices also fell at the time.

With oil prices rebounding the effect of the currency collapse will now pass on to the economy when prices are adjusted, analysts say.

The external sector will continue to benefit from tourism and GSP+ preferential access to the European Union, despite slowing remittances growth, the World Bank said.

"Foreign reserves are expected to improve, with emphasis on purchasing foreign exchange, maintaining a more market-determined exchange rate, and increased FDI," the report said.

The overall fiscal deficit is projected to fall in the medium term, supported by the on-going implementation of revenue measures, but there were risks.

Delays in implementing tax reforms and improving tax administration will further strain fiscal and debt management.

"Sri Lanka faces several challenges that increasingly put its future economic growth and stability at risk, which must be addressed through macro and structural reforms", the World Bank warned.

Broadening and simplifying the tax base and aligning spending with priorities will help the government stay on course towards fiscal consolidation, it said.

Sri Lanka should also shift towards a private investment-tradable sector-led growth model by improving trade, investment, innovation and the business environment.

Implementing the Right to Information Act will improve governance and citizen engagement. State-owned enterprises need to see improving performance and service delivery.

Mitigating the impact of reforms on the poor and vulnerable with well-targeted spending was critical for the success of reforms, the report said.

But slow growth in key countries that generate foreign exchange inflows to Sri Lanka in terms of exports, tourism, remittances and FDI, could put the economy at risk.

Steeper than expected global financial conditions would increase the cost of debt and make rolling over the maturing Eurobonds from 2019 more difficult.

"However, the enactment of the Liability Management Act will help mitigate this refinancing risk," the bank said.

Faster than expected rises in commodity prices would put pressure on the balance of payments and make domestic fuel and electricity price reforms more difficult.

Analysts however say the rising prices of one import will have no effect on the balance of payments, unless imported oil is subsidized with bank credit which in turn will be re-financed with central bank credit (printed money).

In 2015 and 2016 the Sri Lanka slammed into a balance of payments crisis, despite collapsing oil prices, due to money printing. When oil prices are raised, domestic oil users have to forego another purchase, keeping the external sector in balance.

Sri Lanka must also reduce vulnerability and risks in the economy by enhancing disaster preparedness, the World Bank said. (COLOMBO, 16 April, 2018)
avatar
The Invisible

Posts : 809
Join date : 2016-11-28
Age : 39

Back to top Go down

Back to top


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