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Other South Asia
Sri Lanka: 2011 Outlook
Sri Lanka’s economy is thriving after the IMF loan program and the end of the civil war boosted government spending and foreign investment. Besides raising investment in infrastructure, the government has cut import taxes and offered tax incentives for corporations (especially exporters), households and key sectors like tourism, agriculture, fishing and construction—a positive for private demand. Moreover, easing FX regulations for investment in bank deposits, financial services and corporate bonds will accelerate foreign investment, improve financial market liquidity and reduce the crowding-out effects of high public debt (84% of GDP).
Read the 2011 Global Economic Outlook
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