EIU report gloomy
Growth in 2008 to dip to 4.1%
The Economist Intelligence Unit (EIU) in
its country forecast for 2008-09 has
predicted that
Sri Lanka's
real economic growth will slow to 4.1%
in 2008.
According to the EIU report dated May
30, the 4.1% to be recorded in 2008 is a
decline from the 6.8% recorded in 2007.
However, the forecast has said that
there would be a marginal increase in
the real economic growth in 2009 to
4.5%, a figure still well below the
growth for 2007 and the previous years.
The EIU has further said it believes
that Sri Lanka's economic outlook faces
strong downside risks - the exchange
rate and investment growth are areas of
particular concern.
The forecast has also noted that the
conflict would remain intense as the
government pursues a military campaign
against the rebel Liberation Tigers of
Tamil Eelam (LTTE) and that the
frequency of LTTE attacks, including
those on civilian targets, would see an
increase.
