The World Bank’s recent South Asia Economic Focus report indicated that the recent policy reforms including monetary tightening  and revenue-led fiscal consolidation have improved Sri Lanka’s outlook.

It said: “Continuation of the IMF programme will add to the confidence and support fiscal sustainability while structural reforms supported by the World Bank are expected to yield benefits in the medium term.”

According to the report the economy is projected to grow by 4.7 % in 2017 and marginally exceed 5.0 %t growth in the medium term, driven by private consumption and investment.