Sri Lanka Development Update, November 2017 : Creating Opportunities and Managing Risks for Sustained Growth
Despite significant challenges, Sri Lanka's economic performance remained broadly satisfactory in the first half of 2017. The corrective policy measures taken in the monetary and fiscal fronts have led to gradual stabilization. The constructio...
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| Format: | Report |
| Language: | English |
| Published: |
Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/955451509391414963/Sri-Lanka-Development-update http://hdl.handle.net/10986/28826 |
| Summary: | Despite significant challenges, Sri
Lanka's economic performance remained broadly
satisfactory in the first half of 2017. The corrective
policy measures taken in the monetary and fiscal fronts have
led to gradual stabilization. The construction sector's
rapid recovery supported by a strong rebound in investment
was partially able to mitigate the impact of inclement
weather conditions on the real sector. External buffers
strengthened thanks to foreign exchange purchases and
improved capital flows. Inflation has risen since the second
half of 2016 on account of drought and changes to the VAT
Act. Authorities pursued the economic reform agenda
presented in the government policy statements, albeit at a
slower pace, owing to the difficulties faced in a complex
political environment and institutional constraints on
policy implementation. Parliament passed a new Inland
Revenue Law in September 2017, which marks a key milestone
towards sustainable revenue-led fiscal consolidation. |
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