Visually provides on-demand access to the world's top designers and copywriters.Learn More About Visually Infographics
Sri lanka - Current account components
Average inflation in 2013 is expected to be 7.5%, little improved from a year earlier, despite the base effect from the energy price adjustments in 2012 disappearing in the second quarter 2013, expe... cted declines in global commodity and oil prices, and expected exchange rate stabilization at current levels. Gas prices were adjusted upward by 2% and diesel by 5% in the last week of February 2013. Further price increases are required to address the current operating losses of the Ceylon Electricity Board (CEB), and to pay down debts to banks that funded previous years’ losses. The estimated loss was about Rs89 billion (equal to 1.2% of GDP) for Ceylon Petroleum and Rs65 billion (0.9%) for the CEB. An increase in the national minimum wage is a risk that could top up inflationary pressures. Monetary policy will therefore need to remain tight to limit second-round effects and anchor inflation expectations in 2013. External demand is expected to recover gradually in 2013. Merchandise exports are projected to grow at a slow 4% in 2013 and 5% in 2014. Meanwhile, worker’s remittances will continue to expand rapidly. Services exports are expected to be boosted by growing tourism, the further development of business process outsourcing, and higher income from trade and shipping services partly derived from the opening of new port facilities. Revenues from these items will allow imports to expand by 6% in 2013 and 10% in 2014 without widening the current account deficit as a share of GDP (Figure 3.21.10). Normal weather would increase the share of hydropower generation and contain the oil bill. The current account deficit is thus expected to be 5.0% of GDP in 2013 and 4.5% in 2014, both improvements on the estimated 5.8% in 2012. It is assumed that the current account deficit will continue to be financed by capital inflows.Sources: Central Bank of Sri Lanka. Annual Report 2011. http://www.cbsl.lk; ADB estimates
Rank: 3056 of 4888 in Economy
Designed ByUnknown Did you work on this visual? Claim credit!
Switch to Wordpress Code