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Sri Lanka: 2007 Article IV Consultation: Staff Report; Staff Supplements; Public Information Notice on the Executive Board Discussion; and Statement by the Alternate Executive Director for Sri Lanka

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  • International Monetary Fund

Abstract

The staff report for the 2007 Article IV Consultation on Sri Lanka highlights economic growth development and performance. Rising inflation, a high current account deficit, and low unemployment rate indicate that the economy may be operating at full capacity. High stock of public debt, rising near-term debt service needs, and a low level of reserves point to elevated external vulnerabilities. A more determined fiscal consolidation is essential for demand management and debt sustainability. Greater flexibility in the exchange rate is essential to safeguard reserves.

Suggested Citation

  • International Monetary Fund, 2007. "Sri Lanka: 2007 Article IV Consultation: Staff Report; Staff Supplements; Public Information Notice on the Executive Board Discussion; and Statement by the Alternate Executive Director for Sri Lanka," IMF Staff Country Reports 2007/373, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2007/373
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