Sri Lanka likely to miss growth tar­gets af­ter Easter bomb­ings

Daily Mirror (Sri Lanka) - - MIRROR BUSINESS / LATE CITY -

REUTERS: Sri Lanka is un­likely to hit its full-year eco­nomic growth tar­get of 3-4 per­cent fol­low­ing the Easter Sun­day bomb­ings, ju­nior fi­nance min­is­ter Eran Wick­re­mer­atne told Reuters yes­ter­day.

A Reuters poll of 10 an­a­lysts this month pre­dicted growth could slide to 2.5 per­cent, which would be the coun­try’s low­est since 2001.

Tourism, for­eign in­vest­ment and over­all busi­ness ac­tiv­ity are all ex­pected to fall, the poll found, fol­low­ing the April 21 bomb­ings in which more than 250 peo­ple in­clud­ing 42 for­eign­ers were killed. Is­lamic State claimed re­spon­si­bil­ity.

Some an­a­lysts said they were ex­pect­ing a con­trac­tion in growth in the sec­ond quar­ter.

But Wick­re­mer­atne said mea­sures in­clud­ing in­creased gov­ern­ment spend­ing would soften the im­pact of fall­ing in­vest­ment and an es­ti­mated $1 bil­lion slump in tourism rev­enue this year.

Last year the is­land earned US$ 4.38 bil­lion from tourism. Ar­rivals tum­bled 7.5 per­cent in April from a year ago.

Eran Wick­ra­ma­ratne

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