Sri Lanka’s growth is expected to recover moderately to 3.5% in 2019, up from 3.1% last year, the World Bank said yesterday, but warned the country will face stiff headwinds from high debt repayments, difficult global environment, and possible political instability due to elections at home. Releasing the latest Sri Lanka Development Update 2019, the World Bank said the economy is expected to rebound from a low base and move towards 4% in the medium-term, driven by domestic demand. Inflation will stabilise around mid-single digit level, although pass-through of currency depreciation and fuel prices would exert upward pressure. Primary surplus supported by the implementation of revenue measures will contribute to narrow the overall fiscal deficit to 4.7% of GDP by 2021 – Daily Ft

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