Sri Lankan economy heading for a depression 

Sri Lankan economy heading for a depression 

11 May 2019 05:15 pm

Sri Lanka economic output is heading for a depression following the Easter terror shock with fragile economic indicators showed in first quarter this year.      

Broad money (M2b) expanded by 9.8 %, on a year-on-year basis, in March 2019. Net Credit to the Government from the banking system showed a decrease of Rs. 58.9 bn in March 2019, Central Bank announced.   

Credit to public corporations recorded a decrease of Rs. 12.2 bn in March 2019. Credit extended to the private sector increased by Rs. 23.1 bn in March 2019

The reserve money decreased compared to the previous week mainly due to the decrease in currency in circulation and deposits held by the commercial banks.

The total outstanding market liquidity was a surplus of Rs. 61.537 bn by end of the week, compared to a surplus of Rs. 44.61 bn by the end of last week, CB revealed.

During the year up to 10 May 2019 the Sri Lanka rupee appreciated against the US dollar (4.1 per cent). Given the cross currency exchange rate movements, the Sri Lanka rupee appreciated against the pound sterling (1.5 per cent), Japanese yen (3.7 per cent), the euro (6.0 per cent) and the Indian rupee (4.2 per cent) during this period.

India, China, UK, Germany and France were the top five sources of tourist arrivals, accounting for 50.9 per cent of total tourist arrivals up to the month of April 2019, CB said.