Arab Today, arab today sri lanka to cut growth rate for 2012
Last Updated : GMT 09:42:59
Arab Today, arab today
Arab Today, arab today

Sri Lanka to cut growth rate for 2012

Arab Today, arab today

Arab Today, arab today Sri Lanka to cut growth rate for 2012

Colombo - Arabstoday

Sri Lanka’s economic growth forecast will be lowered to a range of 7 per cent to 7.5 per cent due to tighter monetary policy and a rupee depreciation aimed at cutting the trade and current account deficits, the central bank said. Central bank chief economist Swarna Gunaratne also told Reuters the 2011 balance-of-payments deficit was $1 billion. On Friday, the central bank signaled it would cut the growth target for this year to no lower than 7 per cent. “It will be between 7.0-7.5 per cent. The exact figure will be decided at the monetary policy meeting on Tuesday. I think it is a rational estimation and a satisfactory growth in the current situation,” Gunaratne said in an interview with Reuters. Growth at that level would be the slowest expansion since 2009’s 3.5 per cent, and would ease off 2011’s estimated 8.3 per cent. The International Monetary Fund (IMF), which has given a $2.6 billion loan to Sri Lanka, last week said economic growth would be less than 7.5 per cent. The central bank last month was forced to raise policy rates for the first time since 2007 and stop defending the rupee at a specific exchange rate, after the nation’s trade gap ballooned to a record and its current account deficit grew in 2011. The oil bill was as usual the culprit for the trade deficit, which hit a record $9.7 billion, Gunaratne said. Out of that, $4.6 billion was for petroleum purchases, $1.8 billion for vehicle imports and $600 million for gold imports. “The oil bill exceeded the target by $1.5 billion last year, she said. “We expect the oil bill to be $5.2 billion this year due to high oil prices with the average oil price around $118 per barrel compared to last year’s $108.” The central bank spent more than $2.7 billion in foreign exchange reserves in the second half of 2011 to stave off depreciation. The rupee has depreciated more than 6 per cent since the central bank stopped defending the rupee on Feb.9. The central bank is expected to raise its repurchase and reverse repurchase rates by 50 basis points for a second month to 8.00 per cent and 9.50 per cent respectively to their highest level in more than two years, according to a Reuters poll of 17 analysts. The Statutory Reserve Ratio (SRR) is expected to be left unchanged at 8 per cent. The central bank’s lower economic growth forecast for 2012. Analysts expect the central bank to cut the GDP growth forecast to around 7 per cent. The central bank has already said it will be between 7.0-7.5 per cent, down from the earlier forecast of 8 per cent. The impact of the central bank’s measures to slash the trade and current account deficits. The central bank raised key policy rates by 50 basis points for the first time since 2007 and limited commercial banks’ lending to 18 per cent in last month’s monetary policy enouncement.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today sri lanka to cut growth rate for 2012 Arab Today, arab today sri lanka to cut growth rate for 2012

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today sri lanka to cut growth rate for 2012 Arab Today, arab today sri lanka to cut growth rate for 2012

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Taxi! Transport gets an overhaul

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Turkey warns of 'security' steps

GMT 12:17 2017 Sunday ,24 September

Turkey warns of 'security' steps
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Conditions growing dire    

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:11 2017 Saturday ,23 September

Doctor provides advices to families

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday