Sri Lanka: 2007 Article IV Consultation: Staff Report; Staff Supplements; Public Information Notice on the Executive Board Discussion; and Statement by the Alternate Executive Director for Sri Lanka
Volume/Issue:
Volume 2007
Issue 373
Publication date: December 2007
ISBN: 9781451823585
$20.00
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Topics covered in this book
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Business and Economics , Exports and Imports , Inflation , Economics- Macroeconomics , Public Finance , ISCR , CR , debt , bond issue , Sri Lankan authorities , Sri Lankan authority , growth-inflation outlook , rupee treasury bills , GDP data , Debt service , Inflation , Global , Central Asia
Summary
The staff report for the 2007 Article IV Consultation on Sri Lanka highlights economic growth development and performance. Rising inflation, a high current account deficit, and low unemployment rate indicate that the economy may be operating at full capacity. High stock of public debt, rising near-term debt service needs, and a low level of reserves point to elevated external vulnerabilities. A more determined fiscal consolidation is essential for demand management and debt sustainability. Greater flexibility in the exchange rate is essential to safeguard reserves.
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