COLOMBO: Sri Lanka’s economy grew 2.7 per cent in the third quarter of 2019, showing signs of recovery from the Easter Sunday attacks earlier this year on the island nation that killed over 250 people and crippled the country’s fastest-growing tourism sector.
The country’s services sector, accounting for about 60 per cent of the economy, grew at 2.8 per cent, compared with 4.3 per cent last year, data issued by the statistics department showed. Accommodation, food and beverage service activities fell 7.5 per cent in the September quarter, compared with the same period a year ago.
Separately, Fitch Ratings said it had revised the outlook on Sri Lanka’s long-term foreign-currency issuer default rating (IDR) to “negative” from “stable”, while maintaining the IDR at ‘B’. “Revision of the Outlook to Negative from Stable reflects rising risks to debt sustainability from a significant shift in fiscal policy and the potential for roll-back of fiscal and economic reforms in the aftermath of November’s Presidential elections,” the ratings agency said.
Last month, Sri Lanka’s former civil wartime defence chief Gotabaya Rajapaksa won the presidential election, after promising to secure the country against militant threats following Easter bombings. — Reuters
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