Sri Lanka growth positive but needs to reduce debt: IMF

Sri Lanka's economic growth has exceeded expectations last year, the International Monetary Fund (IMF) said today and forecast that the country's economy would grow by around 7 per cent in 2014.
"Real GDP growth reached 7.3 per cent, inflation declined to below 5 per cent," Todd Schneider, the head of the IMF staff mission who ended a 10-day visit to the country, said.
"Near term outlook appears positive, aided by a recovery in advanced economies. The IMF projects real growth to continue at around 7 per cent and inflation to remain close to current rates in 2014," Schneider said.
Commenting further Schneider said short term risks in the Sri Lankan economy appear moderate and are most closely linked to the recent drought and the impact of a weak monsoon on growth and the balance of payments.

The IMF official refuted opposition claims that they have prescribed a slashing of expenditure on free education.
The main opposition leader Ranil Wickremesinghe had said that the government on the dictates of the IMF had slashed budgetary allocations for education.
President Mahinda Rajapaksa challenged the opposition to prove the allegation.