Article published by Daily FT on 19th January 2019, on the Economy and Sector Review and Outlook 2019 seminar organised by the Chamber.

SriLankatogrow3.5 4CCCThe Economic Intelligence Unit of the Ceylon Chamber of Commerce (CCC) expects Sri Lanka to grow by about 3.5% in 2019 buoyed by increased rainfall and stronger consumption but was cautious of political uncertainty ahead of elections and external challenges. 

Presenting the key findings of the Outlook 2019 report compiled by the EIU CCC Chief Economist Shiran Fernando noted that Sri Lanka is likely to see 3.5%-4% growth this year. Economic expansion is likely to come from personal services activities, wholesale and retail trade as well as an increase in household consumption from populist policies usually implemented during an election year. 

However, Fernando expressed concerns over currency depreciation and called for structural reforms to continue to put Sri Lanka on a sustainable growth trajectory. He also noted that Sri Lanka’s Foreign Direct Investment while increasing was limited to “big ticket items” such as the Hambantota Port and Port City that depends on bilateral relations and less on non-state linked foreign investors.  [Read more]