Sri Lankan economy’s current B1 sovereign rating has been based on its high per capita income and growth, the rating agency Moody’s has said in its latest credit analysis.

“Sri Lanka’s per capita income of $2,800 is the wealthiest among its South Asian neighbours”, the analysis said.

It said the island had benefited from integration into the global economy.

The GDP is being enriched by workers’ remittances overseas which have been growing at over 15 per cent annually. Tourism has been another driver of growth with earnings contributing over $800 million.

The end to the war with the LTTE in 2009 has helped growth to move up to over 8 per cent. The inflation has been moderating at 8.9 per cent in October compared to double digits during the peak of the military conflict in 2008-2009.

“However the rehabilitation and reintegration of the northern and eastern provinces ensuring stable macroeconomic environment, which is conducive for attracting domestic and foreign investments will be the key,” the analysis said.

(This article was published on November 17, 2012)
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