COLOMBO, June 29 (Xinhua) -- Sri Lanka's economy is expected to grow 4.3 percent in the medium term, but it will only be possible if the government remains committed to its reform agenda, the World Bank said in a report released Friday.
According to local media, the World Bank advocated that the government should remain committed to the reform agenda aimed at improving competitiveness, governance and public financial management if it wants to record a growth.
"The economy is expected to rebound from a low base and grow around 4.3 percent in the medium term, driven by private consumption and investment," the report said.
It further warned that the upcoming elections remain the single biggest risk with the window for reform narrowing rapidly.
World Bank's Senior Economist Ralph Van Doorn said the challenging political environment has already slowed the reform agenda and remains the key risk to a favourable medium-term outlook.
"Sri Lanka's march towards upper middle-income status and more and better jobs hinges on the economy's competitiveness and its ability to pursue a private investment-tradable sector-led growth model," Ralph said.
He however praised the government for introducing several key reforms, including the new Inland Revenue Act (IRA), transparent fuel pricing formula, drafting of a new Public Finance Act and implementation of a single window for investors.
