Policy measures in early 2012, including a tightened monetary stance and exchange rate flexibility,
addressed emerging domestic and external imbalances. Growth slowed on weak external demand,
and floods, but the balance of payments improved. Growth is expected to edge up, with
some reduction in inflation and the current account deficit. Given elevated public debt levels, sustaining
rapid growth will require determined efforts to eliminate large losses in the energy sector and raise tax
revenues to reduce budget deficits and borrowing.
---------- Sources : Asian Development Outlook Database. http://www.adb.org/sites/default/files/ado2013-sri-lanka.pdf
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