Sri Lanka records economic growth in 2005

Sri Lankan economy grew 5.9 percent in 2005 compared with 5.4 percent growth recorded in 2004, the Central Bank said Friday.

In the fourth quarter of 2005, the economy was estimated to go up 6.3 percent as against 4.4 percent growth in the same period of 2004.

"This growth was achieved in an environment of high international oil prices and rising global competition for exports ", the bank said.

Sri Lankan economy, which recorded a negative growth for the first time in 2001, has recorded continued growth ever since the Tamil Tigers and the government entered the internationally backed truce agreement in 2002.

The government banks on the resumption of negotiations with the Tigers to sustain the growth momentum targeting over 6 percent plus growth target this year, officials said.

The country's President Mahinda Rajapakse who is also the Finance Minister targets a growth of 8 percent.

The bank said that the economy had performed well in all key sectors such as services, industry and agriculture.

The bank said that Tsunami devastation of December 2004 continued to affect the growth momentum. "Construction activities related to various projects to rebuild housing and infrastructure destroyed by the Tsunamis and other on-going projects took place during the quarter", bank said.

Source: Xinhua