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Sri Lanka development update (English)

The Sri Lanka development update report talks about the recent economic developments in Sri Lanka for the year 2015-2016. With no exception, Sri Lanka also faced the challenges of a trying global environment in 2015. Uncertainties in an election year that saw a major political transition contributed to elevate the risks stemming from global context. The accommodative policy choices supported economic growth. Authorities took policy measures aimed at stability, beginning 2016. The fiscal deficit rose sharply in 2015 due to increased expenditures in salary hikes and subsidies, one-off charges, reduced consumption taxes and increased interest costs on resultant deficit financing. A new IMF program is providing a solid platform for macro fiscal stability. World Bank supports the government’s reform agenda, to eliminate obstacles to private sector competitiveness, enhance transparency and public sector management and improve fiscal sustainability. The government has undertaken to implement a medium-term reform agenda that aims to improve competitiveness, governance and public financial management that would bring in long-term benefits. These developments have contributed to an improved outlook. Growth is expected to remain unchanged in 2016 and grow marginally over 5.0 percent beyond, driven by private consumption and postponed FDI in 2015. The special focus section discusses the Systematic Country Diagnostic (SCD) for Sri Lanka, launched by the World Bank in February 2016. The SCD is an objective, evidence-based, candid assessment of the main challenges facing the country, without limitation to the areas where the WBG is currently engaged.

Details

  • Document Date

    2016/09/01

  • Document Type

    Working Paper

  • Report Number

    109372

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Sri Lanka,

  • Region

    South Asia,

  • Disclosure Date

    2016/11/29

  • Disclosure Status

    Disclosed

  • Doc Name

    Sri Lanka development update

  • Keywords

    real effective exchange rate;fiscal deficit;corporate income tax regimes;public debt;external current account deficit;Drivers of Economic Growth;decline in tax revenue;flexible exchange rate regime;direct investment;private credit growth;external public debt;rapid credit growth;sovereign bond;public external debt;interest rate risk;personal income tax;sovereign credit rating;inclusive economic growth;import of goods;state owned enterprise;increase tax collection;source of revenue;government's policy;balance of payment;average interest rate;monetary policy instrument;cumulative growth rate;regional growth rate;technological catch;private sector competitiveness;interest rate movement;high public debt;value added tax;financial market participant;exchange rate depreciation;real interest rate;fiscal policy reform;international commodity price;public debt burden;Foreign Exchange Reserve;stable exchange rate;commercial banking sector;public debt profile;exchange rate pressures;external debt obligation;emerging market currency;floating rate debt;indication of interest;global capital flow;human development indicator;education and health;total public debt;Public Debt Management;adverse weather conditions;international financial market;foreign exchange obligation;Public Financial Management;risk of debt;debt repayment obligation;foreign currency debt;fees and charge;domestic public debt;high growth rate;Letter of Credit;corporate tax rate;per capita income;global value chain;social inclusion;motor vehicle fleet;united nations agency;fiscal consolidation;excess liquidity;core inflation;treasury bill;currency depreciation;retail trade;financial account;external financing;Real estate;personal service;advanced economy;guaranteed debt;deficit financing;government security;fiscal operation;global trade;agriculture sector;policy option;construction sector;swap arrangement;domestic sources;vat rate;private consumption;average inflation;capital outflow;inclement weather;trade deficit;foreign inflow;foreign capital;capital gain;domestic debt;official reserve;government consumption;contingent liabilities;contingent liability;risk indicator;rising inflation;global environment;fiscal vulnerability;global growth;extreme poverty;market intervention;real gdp;excise tax;net inflows;consumption tax;commercial term;primary deficit;wage hike;global context;positive impact;Social Welfare;equity market;refinancing risk;total debt;fiscal target;government revenue;net lending;state bank;merchandise import;tourism receipts;public expenditure;production side;upward pressure;fuel bill;long-term credit;external borrowing;business enterprise;debt maturity;domestic bank;foreign debt;remittance outflow;international market;commercial borrowing;transportation network;capital interest;worker remittance;exchange inflow;short term liabilities;agricultural sector;import duty;foreign holding;international bond;Treasury securities;investment growth;trade spread;treasury security;balanced growth;debt service;guarantee issue;bond issue;budget proposal;bond auction;foreign-currency debt;liquidity injection;public finance;local company;portfolio investment;inflation targeting;productivity gain;post conflict;sustainable fiscal;investment return;manufacturing sector;outstanding debt;political environment;sectoral growth;government holding;government credit;personal loan;government's vision;traditional sector;short-term liability;budget plan;commercial debt;merchandise export;outward orientation;global demand;Natural Resources;disposable income;civil society;reserve adequacy;transportation sector;foreign financing;government issue;Fiscal policies;medium-term development;rural economy;middle class;fundamental changes;political transition;applicable law;subsidiary right;photo credit;short-term stability;downside risk;long-term benefits;import growth;expenditure survey;downward pressure;price movement;price index;global commodity;trade balance;price control;green leave;social work

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Citation

Sri Lanka development update (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/622841476967944601/Sri-Lanka-development-update