IMF Staff Country Reports

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

Author/Editor:

International Monetary Fund

Publication Date:

December 3, 2007

Electronic Access:

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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.

Series:

Country Report No. 07/373

Subject:

Article IV consultations Current account deficits Economic growth Economic policy Exchange rate policy Exchange rates Exchange systems External debt Financial sector Fiscal policy Inflation Monetary policy Public debt Public information Staff appraisals