Sri Lanka Economy Booms - Governor, Central Bank of Sri Lanka, Cabraal 13 May2010

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Governor, Central Bank of Sri Lanka, Ajith Nivard Cabraal: Having emerged from years of civil war, Sri Lanka is in a position to address its long-term economic development and infrastructural regeneration. The country's central bank governor discusses his monetary policy for 2010 and explains how it will work alongside the government's reform plans.

Sri Lanka maintained a positive growth economy throughout the later stages of its conflict against terrorism, despite unsettling attacks and the sheer cost of military operations.

With the conflict over and no security issues for a year, he said, foreign investors are showing keen interest in Sri Lankas potential.

For the second consecutive month Sri Lanka's inflation declined to 5.8 percent in April from a 6.3 percent in March 2010, the Central Bank reported today.

However, the annual average inflation, increased marginally to 3.4 percent in April from 3.2 percent in March.

This development is attributable to the easing of monetary policy as well as improving financial conditions and the resulting downward adjustment in market interest rates

How America Rate Sri Lanka?

Sri Lankas economic freedom score is 54.6, making its economy the 120th freest in the 2010 Index. Its score is 1.4 points lower than last year, reflecting deterioration in four of the 10 economic freedoms. Sri Lanka is ranked 23rd out of 41 countries in the AsiaPacific region, and its overall score is lower than the world average. Business Freedom 71.8: The overall freedom to start, operate, and close a business is relatively well protected under Sri Lankas regulatory environment. Starting a business takes about the world average of 35 days. Obtaining a business license takes less than the world average of 218 days, but costs are high. Closing a business is relatively simple.

Ten Economic Freedoms of Sri Lanka
71.8 Business Freedom Avg 64.6
15.0 Investment Freedom Avg 49.0
62.2 Trade Freedom Avg. 74.2
40.0 Financial Freedom Avg 48.5
73.5 Fiscal Freedom Avg. 75.4
40.0 Property Rights Avg 43.8
83.9 Government Spending Avg. 65.0
32.0 Fdm. from Corruption Avg 40.5
56.8 Monetary Freedom Avg. 70.6
70.7 Labor Freedom Avg 62.1

http://www.heritage.org/index/country...

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