Sri lankan economy is progressing to achieve over 5 percent growth in the second quarter of 2005 despite the Dec. 26 tsunami, the Daily News quoted the International Monetary Fund (IMF) report as saying Monday.

The IMF has also forecast over 5 percent growth for 2005 and around 6 percent growth for 2006, the IMF report said, adding the economic conditions have continued to improve since the IMF staff visits to Sri Lanka in April 2005.

The economic growth and international trade has improved, inflation has moderated, foreign flows have increased, balance of payments has recorded a surplus, according to the report.

Official reserves have risen to over three months of imports, fiscal consolidation has continued and monetary policy has been tightened to contain monetary expansion and adverse developments in inflation, it said.

Source: Xinhua