Sri Lanka ...

Meanwhile, he said that continuing policy improvements is crucial, and that for fiscal policy, implementation of the newly passed Inland Revenue Act properly would be the next hurdle for the government. Lee went on to say that although the overall budget deficit will be slightly worse than the expected at 4.6 percent of the gross domestic product this year, the government has until now reached the primary balance target, which is more important, and that indications are that the government will reach a primary surplus by the end of the year.

He said that improving debt management is also crucial.

“Turning to Central Bank policies, continuing the recent case of reserve accumulation will remain important to ensure external stability keeps on improving.

At the same time, continuing commitment to greater flexible exchange rate policy, and preparation for transition to flexible inflation targeting also remain very important,” he added.

The reserves have now reached US$ 7.3 billion, compared to US$ 6 billion at the end of 2016, while the Central Bank has allowed the rupee to depreciate.

Lee noted that although the weather related shocks contributed to growth slowing to below 4.5 percent, and inflation increasing, these metrics might improve next year. Although the Central Bank too is expecting improvements next year, it had projected the economy to