ISLAMABAD:Sri Lanka’s economy may have a higher than expected growth rate in the first quarter of 2021, a statement issued by the Central Bank of Sri Lanka (CBSL) said here Thursday.
“Indicators for several key sectors of the economy point towards a stronger than expected recovery during the quarter,” the statement said.
The CBSL said that growth was weakened in the second quarter due to a third wave of COVID-19 infections and preventative measures that disturbed economic activity.
“The ongoing vaccination drive throughout the country and the likely removal of mobility restrictions are expected to ease the impact of the current wave of COVID-19 on overall economic activity, thereby facilitating a sustained economic recovery towards achieving a GDP growth rate of around 5 percent in 2021,” the statement said.
The Monetary Board of the Central Bank of Sri Lanka has decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) at 4.5 percent and 5.5 percent respectively in light of current macroeconomic conditions and expected local and global developments.