Sri Lanka: 2013 Article IV Consultation and Proposal for Post-Program Monitoring
IMF Staff Country Reports, May 16, 2013
Source details
- Canonical URL
- Sri Lanka: 2013 Article IV Consultation and Proposal for Post-Program Monitoring
Other formats
Bibliographic details
- Published: May 16, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484320433.002
Summary
- The paper discusses the economic developments and policies in Sri Lanka in recent years.
- Substantial adjustments in energy prices and operational and financial reforms have helped to improve the performance of state owned enterprises (SOEs) and have reduced the burden on the budget and the banking system.
- Despite challenging global and domestic market conditions, overall soundness of the financial sector has improved with higher levels of capital, liquidity, and healthy earnings.
- The Sri Lankan economy is expected to return to a high growth trajectory, though conditional on recovery in external demand.
Major findings
- Energy price adjustments and operational and financial reforms materially improved SOE performance.
- The burden of SOEs on the budget and the banking system was reduced following these reforms.
- The financial sector exhibited improved soundness characterized by higher levels of capital, higher liquidity, and healthy earnings despite adverse global and domestic conditions.
- Prospects for a return to a high growth trajectory are conditional on recovery in external demand.
Subject areas and keywords
- Subject: Banking, Debt burden, External debt, Inflation, Prices, Public debt, Revenue administration
- Keywords: Central Asia, cost structure, CR, Debt burden, deficit, Global, Inflation, inflation pressure, ISCR, policy rate corridor, rate, staff appraisal, tariff calculation methodology