Sri Lanka expects to grow 5.5-pct in 2022: CB Governor

ECONOMYNEXT – Sri Lanka expects to grow 5.5 percent in 2022, with a recovery in tourism also helping Central Bank Governor Nivard Cabraal said.

Sri Lanka is going through a difficult time but has shown to be resilient in the past, he said.
He said 2021 growth is likely to be around “4.5 percent to 5.0 percent.”

Sri Lanka’s economy has shown resilience in the past with a 30-year war and a JVP uprising when some companies were asked to close, he said.

Sri Lanka is in the midst of a currency crisis with the credibility of a 200 to the US dollar peg being lost and reserves being lost.

In December 2021 reserves rose to 3.1 billion US dollar with the central bank borrowing dollars through swaps after falling to 1.6 billion US dollars in November, raising fears of default.

Cabraal said the Sri Lanka will not default and will continue to pay loans and keep its records.

Sri Lanka’s interest rates however is now low compared to expanding domestic credit.

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